OCAS Ohio Casualty (MM)

A.M. Best Co. has upgraded the financial strength rating (FSR) to A (Excellent) from A- (Excellent) and the issuer credit ratings (ICR) to �a� from �a-� for Ohio Casualty Group (Group) and its members. Concurrently, A.M. Best has upgraded the ICR and senior debt ratings to �bbb� from �bbb-� and the various indicative debt ratings for the Group�s parent, The Ohio Casualty Corporation (Ohio Casualty) (Fairfield, OH) [NASDAQ: OCAS]. The outlook for all ratings has been revised to stable from positive. (See below for a detailed listing of the ratings.) The ratings reflect the Group�s strong overall underwriting results, very strong risk-adjusted capitalization and good business position as a regional provider of property/casualty insurance products predominately in the midwestern and mid-Atlantic states. The rating upgrades recognize the Group�s improved underwriting results attributed to re-underwriting initiatives that include the non-renewal of unprofitable accounts, enhanced technological systems and rate increases implemented on a compounded basis. In addition, despite pockets of adverse development, these rating actions reflect the Group�s more conservative reserving practices as evidenced by favorable prior year reserve development in aggregate in recent years. The Group also benefits from the improved financial flexibility of Ohio Casualty. Ohio Casualty maintains moderate debt-to-capital levels of less than 15%, strong interest coverage measures and cash resources to further strengthen the consolidated entities� liquidity. Somewhat offsetting these rating strengths are the Group�s underperforming commercial lines business driven largely by adverse development related to workers� compensation and construction defect claims. Although A.M. Best is concerned with the potential impact that softening property/casualty market conditions may have on mid-term operating results, current management has achieved progress in addressing underwriting, pricing and actuarial controls while improving the Group�s risk profile. A.M. Best expects this to enable the Group to produce earnings in line with its current ratings despite increased competitive pressures. The FSR has been upgraded to A (Excellent) from A- (Excellent) and the ICRs to �a� from �a-� for Ohio Casualty Group and its following members: The Ohio Casualty Insurance Company American Fire and Casualty Company Avomark Insurance Company Ohio Security Insurance Company West American Insurance Company The ICR has been upgraded to �bbb� from �bbb-� for The Ohio Casualty Corporation. The following debt rating has been upgraded: The Ohio Casualty Corporation� -- to �bbb� from �bbb-� on $200 million 7.3% senior unsecured notes, due 2014 The following indicative debt ratings on securities available under shelf registration have been upgraded: The Ohio Casualty Corporation- - -- to �bbb� from �bbb-� on senior unsecured debt -- to �bbb-� from �bb+� on subordinated debt -- to �bb+� from �bb� on preferred stock Ohio Casualty Trust I & II -- -- to �bb+� from �bb� on preferred securities For Best�s Debt Ratings, all other Best�s Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com.