NOVEMBER 23, 2022 10:36 AM (EST)
AM Best Downgrades Credit Ratings of Al Ittihad Al Watani; Places Credit Ratings Under Review with Negative Implications
|Charlotte Vigier |
Senior Financial Analyst
+44 20 7397 0270
Ghislain Le Cam, CFA, FRM
+44 20 7397 0268
Manager, Public Relations
+1 908 439 2200, ext. 5159
+1 908 439 2200, ext. 5098
FOR IMMEDIATE RELEASE
LONDON - NOVEMBER 23, 2022 10:36 AM (EST)
AM Best has downgraded the Financial Strength Rating to B (Fair) from B+ (Good) and the Long-Term Issuer Credit Rating to “bb+” (Fair) from “bbb-” (Good) of Al Ittihad Al Watani (L’Union Nationale) Société Générale D’Assurances du Proche Orient, sal (Al Ittihad) (Lebanon). Concurrently, AM Best has placed these Credit Ratings (ratings) under review with negative implications.
The ratings reflect Al Ittihad’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and weak enterprise risk management (ERM).
The rating downgrades reflect AM Best’s revised assessment of Al Ittihad’s ERM following extended delays in the release of its audited financial statements for year-end 31 December 2021. The under review with negative implications status reflects uncertainty regarding the financial position of Al Ittihad in light of the delayed publication of the company’s audited financial statements.
The ratings are expected to remain under review with negative implications in the near term, until AM Best has received audited financial statements for year-end 2021 and has been able to assess the company’s credit rating fundamentals.
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.