GCR updates international scale ratings for South African insurance companies
Johannesburg, 24 October 2014 – Global Credit Ratings (“GCR”) has updated the international scale rating outlooks of South African insurance companies following a recalibration of the mapping tables used for issuers/companies rated in South Africa.
SUMMARY RATING RATIONALE
The updated mapping table follows a revision of the Republic of South Africa’s sovereign rating outlook to Negative from Stable.
The rating actions do not reflect a change in the fundamental credit quality of the companies listed below. Rather, it is a blanket revision of the outlooks on the companies’ international ratings, following the parallel sovereign change.
The domestic ratings, and associated outlooks, of the companies below remain unaffected by the review of the sovereign and their own international rating outlooks (i.e. relative rankings are unchanged).
GCR will continue to monitor developments related to the sovereign and will respond to any impact on criteria and ratings.
The international scale claims paying ability ratings and outlooks publically accorded to insurers by GCR are summarised below:
Previous (last rating)
Auto & General Insurance Company Ltd
Hannover Reinsurance Africa Ltd
Nedgroup Insurance Company Ltd
For a detailed glossary of terms utilised in this announcement please click here
Sector Head: Insurance
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GCR affirms that a.) no part of the rating was influenced by any other business activities of the credit rating agency; b.) the ratings were based solely on the merits of the rated entities, security or financial instrument being rated; c.) such ratings were an independent evaluation of the risks and merits of the rated entity, security or financial instrument; and d.) the validity of the ratings are for a maximum of 12 months, or earlier as indicated by the applicable credit rating document.
The credit ratings have been disclosed to the entities with no contestation of the rating.
The ratings above were solicited by, or on behalf of, the rated clients, and therefore, GCR has been compensated for the provision of the ratings.
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