S&P lowered its counterparty credit and insurer FSR on Independent Insurance Co. Ltd. to “BBB+” from “A,” and revised the CreditWatch implications to developing from negative.
While management indicated that it is reviewing a number of options to address the capital concerns for the group, there is some uncertainty attached to the process. If prospective capitalization goes to a strong level as a result of action taken, this could be supportive of raising the rating to “A-.” Lowering of the rating is also attributable to lower levels of financial flexibility, liquidity and historical profitability, and the damage that it may cause to the business franchise.
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