S&P puts Asia Capital on watch

S&P said it placed Asia Capital Reinsurance’s A- long-term local-currency insurer financial strength and issuer credit ratings on CreditWatch with negative implications, along with its axAA long-term Asean regional scale rating.

The CreditWatch placement follows news that major shareholders of Asia Capital’s holding company ACR Capital Holdings Pte. Ltd. agreed to the takeover of Asia Capital by Shenzhen Qianhai Financial Holdings Co. Ltd. and Shenzhen Investment Holdings Co. Ltd., S&P explained.

There currently is limited information on plans for Asia Capital, the agency said, and on its business, investment and capital management strategy following the change of ownership.

The new ownership could alter Asia Capital’s business or investment strategy or capital management policy in a way that could weaken its credit profile, S&P said.

The watch will be resolved within the next 90 days following discussions with the new shareholders and additional clarity on the deal, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.