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Bahrain, UAE: S&P assigns first two regional credit ratings in the Gulf

Global Arab Network - - Mohammed Almasri

Wednesday, 14 April 2010 11:46

Standard & Poor's Ratings Services announced yesterday it had assigned its first regional credit ratings in the GCC following the launch of the new ratings scale in February this year.

Jan Willem Plantagie, Dubai-based head of Standard & Poor's in the Middle East, commented: "We have had considerable interest from local companies in our new regional ratings for the GCC and we are delighted to publish the first of what we hope will be many regional credit such ratings. These local ratings help investors and others better compare the relative credit risk of debt issuers across the region, and we believe they will contribute to better informed, more liquid and more efficient debt markets in the Gulf."

S&P said it had assigned its 'gcAA' regional credit rating scale for the Gulf Cooperation Council to United Arab Emirates (UAE)-based insurer Emirates Insurance Co. (PSC). The company's global long-term counterparty credit and insurer financial strength ratings of 'BBB+' remain unchanged. The outlook is stable.

"The ratings on Emirates Insurance reflect its strong capitalization, strong earnings, and strong liquidity," said Standard & Poor's credit analyst Nigel Bond. "These positive factors are partially offset by high reinsurance dependence and a concentrated equity investment portfolio within the United Arab Emirates".

It also assigned its 'gcAA' regional credit rating scale for the Gulf Cooperation Council to Bahrain-based insurer Bahrain National Insurance Co. BSC (BNI). We also affirmed the 'BBB+' global scale long-term counterparty credit and insurer financial strength ratings on BNI. The outlook is stable.

"The ratings on BNI reflect its strong operating performance, strong capitalization, and strong investments," said Standard & Poor's credit analyst Neil Gosrani. "These positive factors are partially offset by its restricted competitive position and high reinsurance utilization for commercial risks."

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