Standard & Poor's Ratings Services said today that it placed its 'BBB+' long-term counterparty credit and insurer financial strength ratings on United Arab Emirates (UAE)-based composite insurer Oman Insurance Co. (PSC) on CreditWatch with negative implications.
The CreditWatch placement follows the placement of the long-term counterparty credit rating on Oman Insurance's parent, UAE-based Mashreqbank (A-/Watch Neg/A-2), on CreditWatch with negative implications on Nov. 26, 2009 (see "Ratings On Four Dubai-Based Banks Placed On CreditWatch Negative On Dubai World Restructuring Announcement").
We expect to resolve the CreditWatch status on Oman Insurance within the next three months, at the same time as the CreditWatch placement on Mashreqbank is resolved. If there is no change in Oman Insurance's stand-alone credit profile of 'BBB+', the resolution of the CreditWatch on Mashreqbank will have the following impact on the ratings on Oman Insurance:
A one-notch downgrade of Mashreqbank to 'BBB+' will leave the rating on Oman Insurance unchanged at 'BBB+';
A two-notch downgrade of Mashreqbank to 'BBB' will likely cause the rating on Oman Insurance to be lowered to 'BBB', in line with our group methodology.
© 2009 Al Bawaba (www.albawaba.com)
