Best’s News & Research Service - January 07, 2021 10:49 AM (EST)
AM Best Withdraws Credit Ratings of Credendo – Single Risk Insurance AG
- January 07, 2021 10:49 AM (EST)
Amsterdam //BestWire// - AM Best has maintained the under review with developing implications status for the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Credendo – Single Risk Insurance AG (Credendo – Single Risk) (Austria), which is a subsidiary of Credendo Export Credit Agency, a holding company of a group of trade credit and political risk insurance companies (Credendo group). Concurrently, AM Best has withdrawn these Credit Ratings (ratings) as the company has requested to no longer participate in AM Best’s interactive rating process.
The ratings reflect Credendo – Single Risk’s balance sheet strength, which AM Best categorises as strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management. The ratings were placed under review with developing implications following the announcement in September 2020 that the Credendo group intends to merge Credendo – Single Risk into its sister company, Credendo – Excess & Surety. The combined entity will be renamed Credendo – Guarantees & Speciality Risks. The merger is expected to complete in the second quarter of 2021, retroactive to 1 January 2021, and is subject to regulatory approval, at which point, Credendo – Single Risk will cease to exist. AM Best is not currently able to assess the expected risk-adjusted capitalisation, prospective performance and business plans of the combined entity.
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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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 New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.