Standard & Poor's Ratings Services said today it placed its 'A-' 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-1), on CreditWatch with negative implications on March 17, 2009 (see "Four Dubai-Based Banks Long-Term Ratings Placed On Creditwatch Negative On Deteriorating Operating Environment"). Under our criteria, the rating action on Oman Insurance should have occurred simultaneously with that on Mashreqbank, and this article both notes that fact and places Oman Insurance at the appropriate rating.
We expect to resolve the CreditWatch status in the coming six weeks. We do not anticipate to lower the ratings on Mashreqbank by more than one notch, based on our current expectations. As a strategically important subsidiary of Mashreqbank, the ratings on Oman Insurance benefit from group support and we therefore do not expect to lower them by more than one notch.
