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S&P removes ABNIC from creditwatch negative, but lowers rating

Standard & Poor’s has removed UAE insurer Al Buhaira National Insurance Company from creditwatch negative but downgraded the firm’s rating.

The ratings agency said the financial profile of the insurer “has weakened” therefore it is placing the firm’s BBB rating to BBB-.
A statement from S&P said the negative outlook reflects our continued concern about ABNIC’s financial profile.
It said: “The downgrade of ABNIC, the parent company and core operating entity of ABNIC Group, reflects our view that the group’s financial profile has weakened. This, in turn, reflects our belief that ABNIC Group’s investments, liquidity, capitalisation, and financial flexibility have all weakened, primarily due to continued debt-funded property investment and rising leverage ratios.”

Last month S&P placed the firm’s BBB rating on creditwatch negative.