Moody's cuts Life Insurance

Moody's Investors Service said it downgraded the foreign currency insurance financial strength rating of the Life Insurance Corp. of India to Baa3 from Baa2.

The outlook is stable.

Moody's said the downgrade reflects its assessment that its creditworthiness is highly correlated with that of the Indian government's credit strength, considering (a) the extent to which its business depends on the domestic economy; (b) the limited degree of cross-border diversification within its operation; (c) its significant level of balance-sheet exposure to domestic sovereign debt, relative to its capitalization; and (d) the absence of strong foreign ownership.

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