Standard & Poor's lowers ratings on Suez Canal Insurance
Standard & Poor's recently lowered its long-term counter party credit and insurer financial strength ratings on Egypt-based Suez Canal Insurance (Suez) to a stable triple-'B' from triple-'B'-plus. Consequently, Suez is no longer subject to continuous surveillance by the rating agency.
The ratings were withdrawn at the request of Suez's management. The downgrade on Suez follows the lowering of the issuer credit ratings on the Arab Republic of Egypt’s local currency on May 22. The ratings on Suez are based on the company's strong capital adequacy, strong operating performance, and very strong business position. These factors are offset by Suez's reinsurance dependence, increasing competition in the Egyptian market from overseas-backed companies, and the influence on Suez of the issuer credit ratings on Egypt.
Suez was established in 1981 and offers services in the field of insurance and reinsurance. The company realized issued premiums of 147 million Egyptian Pounds ($31 million) in financial year 2000/2001. Suez has branches in Cairo, Alexandria, Upper and Lower Egypt and in the Red Sea region. — (menareport.com)
© 2002 Mena Report (www.menareport.com)