2013-12-13 21:02:02 -
A.M. Best Asia-Pacific Limited has placed under review with negative implications the financial strength rating of A- (Excellent) and issuer credit rating of “a-” of Hyundai Insurance (China) Co., Ltd. (HIC) (China).
The under review status reflects the material increases in HIC’s credit and liquidity risks due to the extremely large fire loss at the memory chip maker, SK Hynix Inc., at its factory in Wuxi, China in September 2013.
As the leading underwriter of these risks, HIC is expected to see significant deterioration in its risk-adjusted capitalization given the impact of the gross insurance loss on both credit risk related to reinsurance recoveries and overall liquidity. The ratings will remain under review pending further discussions between A.M. Best and HIC’s management
regarding measures to restore the company’s risk-adjusted capitalization.
The methodology used in determining these interactive ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww ..
Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.
A.M. Best Asia-Pacific Limited is a subsidiary of A.M. Best Company. A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww ..
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