Standard & Poor’s Ratings has assigned its long-term ‘A’ counterparty and insurer financial strength ratings to Kenya-based African Trade Insurance Agency (ATI)with a stable outlook. “The ratings on ATI reflect very strong capitalization, strong investments, and strong liquidity,” said S&P. “Constraints on the rating reflect the undeveloped nature of the target insurance markets in the African region, and the lack of a proven track record for operational control within the business. Furthermore, the financial flexibility is constrained by the economic limits of the member governments, although it benefits from supranational status and a fundamentally economic business motive.” ATI’s core strategy is to promote trade and investment in Africa through the provision of political investment risk insurance and export credit insurance.”
Standard & Poor’s Ratings Services has assigned its ‘BBB-‘ long-term counterparty credit and insurer financial strength ratings to Spanish mutual insurer FIATC, Mutua de Seguros y Reaseguros a Prima Fija with a stable outlook. “The ratings reflect FIATC’s good operating performance, adequate capitalization, and good competitive position,” stated S&P credit analyst Marie-Aude Salinas. These factors are offset by our marginally negative view of corporate strategy and the company’s weak risk management controls.
“We expect that FIATC will maintain the improving trend in its operating performance, albeit not necessarily to the extent seen in 2007, with a net combined ratio just below 100 percent for 2008 and 2009,” Salinas added.
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