KUALA LUMPUR, Sept 30 (Bernama) -- AM Best has downgraded the Financial Strength Rating to C (weak) from B- (fair) and the Long-Term Issuer Credit Rating to ‘ccc+’ from ‘bb-’ of the Royal Insurance Corporation of Bhutan Limited (RICB) Bhutan.
Concurrently, the rating agency has maintained under review with negative implications status on these credit ratings.
The ratings reflect the company’s balance sheet strength, which AM Best classified as weak, as well as its adequate operating performance, neutral business profile and marginal enterprise risk management.
The rating downgrades reflect a deterioration in AM Best view of RICB’s balance sheet strength and operating performance fundamentals.
RICB’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, declined to a weak level last year and is expected to remain subject to significant pressure and volatility over the near term.
The continuation of the under review with negative implications status reflects AM Best’s expectation of near-term volatility in the company’s balance sheet strength and operating performance, as well as the potential for further deterioration in these key rating fundamentals.
AM Best will continue to monitor closely near-term developments and expects to resolve the under review status when a forward-looking view on rating fundamentals can be determined.
-- BERNAMA
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