NEW YORK_Credit ratings agency Standard & Poor's Monday affirmed the ratings of National Western Life Insurance Co., but placed them on a negative outlook.

A negative outlook is a long-term view that suggests there is a 33 percent chance of a downgrade in the next two years.

In the near term, S&P said it affirmed National Western Life's "A" counterparty credit and financial strength ratings. Those ratings are considered investment grade.

The rating was placed on a negative outlook because of concerns about the insurer's ability to return to historical profitability levels, S&P credit analyst Timothy Clark said in a statement. S&P is also concerned about the company's competitive position in the U.S. annuity market and its investment risk-management practices, Clark added.

However, National Western Life Insurance's ratings remain strong because of solid capital and liquidity positions as well as a competitive position in the international life insurance market, S&P said.

Shares of National Western Life Insurance rose $4.77, or 4 percent, to $124.66 in afternoon trading. Shares have traded between $52.51 and $275 during the past 52 weeks.