Moody's Investors Service has raised its rating on the Louisiana Citizens Property Insurance Corp.'s $894 million of outstanding tax-exempt assessment revenue bonds to Baa1 from Baa2. The outlook moved to positive from stable.

Moody's said the upgrade is based on the strong legal security provided by the corporation's ability to levy on policyholders the emergency assessments that support the bonds. Other bondholder protection includes two debt-service reserve funds, strong state support for the insurance program, and fairly strong liquidity and claims-paying ability.

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