SINGAPORE, Feb 16 (Bernama-BUSINESS WIRE) -- AM Best has placed under review with negative implications the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb+” (Good) of Fubon Insurance Vietnam Co., Ltd. (Fubon Vietnam) (Vietnam).
This Credit Rating (rating) action follows AM Best’s downgrade of the Long-Term ICR of Fubon Vietnam’s parent company, Fubon Insurance Co., Ltd. (Fubon Insurance) (Taiwan) on 3 February 2023 (see related press release). AM Best downgraded Fubon Insurance’s Long-Term ICR to “a” (Excellent) from “a+” (Excellent) while affirming its FSR of A (Excellent), and also placed the ratings under review with negative implications. That recent development was the result of weakened financial strength and ongoing uncertainty around the credit profile of Fubon Insurance. Fubon Vietnam’s ratings incorporate rating enhancement from its ownership and integration with Fubon Insurance. As a result, AM Best needs to assess the impact of further near-term developments on the credit profile of Fubon Insurance to determine its continued ability to provide explicit support to Fubon Vietnam.
The under review with negative implications status on Fubon Vietnam’s ratings reflects the need for AM Best to fully assess the company’s eligibility to continue receiving rating enhancement prospectively. The ratings will remain under review pending completion of AM Best’s assessment of the credit rating fundamentals of Fubon Insurance.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20230215005774/en/
Contact
Isaac Yeo
Associate Financial Analyst
+65 6303 5019
isaac.yeo@ambest.com
Chris Lim, CFA
Senior Financial Analyst
+65 6303 5018
chris.lim@ambest.com
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Al Slavin
Senior Public Relations Specialist
+1 908 439 2200, ext. 5098
al.slavin@ambest.com
Source : AM Best
This Credit Rating (rating) action follows AM Best’s downgrade of the Long-Term ICR of Fubon Vietnam’s parent company, Fubon Insurance Co., Ltd. (Fubon Insurance) (Taiwan) on 3 February 2023 (see related press release). AM Best downgraded Fubon Insurance’s Long-Term ICR to “a” (Excellent) from “a+” (Excellent) while affirming its FSR of A (Excellent), and also placed the ratings under review with negative implications. That recent development was the result of weakened financial strength and ongoing uncertainty around the credit profile of Fubon Insurance. Fubon Vietnam’s ratings incorporate rating enhancement from its ownership and integration with Fubon Insurance. As a result, AM Best needs to assess the impact of further near-term developments on the credit profile of Fubon Insurance to determine its continued ability to provide explicit support to Fubon Vietnam.
The under review with negative implications status on Fubon Vietnam’s ratings reflects the need for AM Best to fully assess the company’s eligibility to continue receiving rating enhancement prospectively. The ratings will remain under review pending completion of AM Best’s assessment of the credit rating fundamentals of Fubon Insurance.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20230215005774/en/
Contact
Isaac Yeo
Associate Financial Analyst
+65 6303 5019
isaac.yeo@ambest.com
Chris Lim, CFA
Senior Financial Analyst
+65 6303 5018
chris.lim@ambest.com
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Al Slavin
Senior Public Relations Specialist
+1 908 439 2200, ext. 5098
al.slavin@ambest.com
Source : AM Best
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