Standard & Poor's Ratings Services said today it affirmed at 'BBB-' its counterparty credit and insurer financial strength ratings on Jordan-based Middle East Insurance Co. (MEICO). The outlook remained stable. The ratings were then withdrawn at the insurer's request. We performed a detailed analysis of MEICO, which supported our affirmation of the ratings before they were withdrawn. Our analysis confirmed the insurer's good commercial and financial profile. The company's competitive position, operating performance, and capitalization were all identified as good, while liquidity remains strong relative to likely needs.
However, the final rating level continues to be constrained by general macroeconomic considerations relating to economic and industry risks in the Hashemite Kingdom of Jordan (local currency: BBB-/Stable/A-3; foreign currency: BB/Stable/B) and their potential, if indirect, impact on MEICO's capitalization and financial flexibility.
