NEW YORK (AP) - Standard & Poor's (S&P) Ratings Services has revised its outlook on Max Capital Group Ltd. and its subsidiary Max USA Holdings Ltd. to "positive" from "stable" and affirmed investment-grade ratings on the companies.

S&P said the outlook revision is based on its expectation that the Bermuda-based reinsurer will be ready for an upgrade in the next 18 to 24 months. Max Capital and its subsidiary currently have a counterparty credit rating of "BBB-", one notch above junk status.

"Max Capital enjoys a good competitive position as a diversified insurance and reinsurance company, adequate enterprise risk management, strong operating performance and strong capitalization," S&P said.

Certain issues that once limited the company's ratings, including a concentrated account profile, regulatory risk and an outsourced life reinsurance claims business, have improved or been resolved, S&P said.

Max Capital shares rose two cents to close at $26.57. Shares continued to rise in aftermarket trading, adding 12 cents to reach $26.69.