Credit Suisse is upgrading span style="font-weight: bold;"XL Capital (NYSE:XL)/span to Outperform from Neutral while raising target to $18 (prev. $13).br /div style="text-align: justify;"br /Analyst notes they are upgrading XL for 2 reasons:br /br /span style="font-weight: bold;"- 1. Improving fixed income markets should lead to/spanspan style="font-weight: bold;" a strengthening capital position./span CSFB believes it is unlikely that the company will raise capital even if fixed income markets deteriorate significantly.br /br /span style="font-weight: bold;"- 2. Firm believes that XL's Franchise is stabilizing with lower top line declines going forward and underwriters continuing to maintain pricing discipline./span In their view, a stronger capital position and stabilization in the franchise could lead to the removal of the negative ratings outlook by rating agencies in 6-12 months which should lead to an improvement in valuation from distressed levels as investors focus more on book value growth rather than the company's survival. As fixed income markets ...