NEW YORK (Bloomberg) — US life insurers, a group led by MetLife Inc. and Prudential Financial Inc., may avoid downgrades after gains in their fixed-income portfolios, Moody's Investors Service said.

"US life insurers are simply in a much better position now than they were a year ago to weather a second downturn, should one occur," said Laura Bazer, senior credit officer for the ratings firm, in a statement yesterday updgrading the outlook on the industry to "stable" from "negative".