Fitch upgrades FWD securities to BBB-

Fitch Ratings said it upgraded the rating of FWD Ltd.'s $200 million of subordinated perpetual securities to BBB- from BB+.

The rating remains on rating watch evolving, where they were placed on Sept. 28, after the announcement by the parent, FWD Group Holdings Ltd., that it had filed an application for an IPO. FWD Group recently reported a $1.425 billion private placement of common shares.

“The upgrade of the rating on the subordinated perpetual securities follows the implementation of the group-wide supervision (GWS) framework by the Hong Kong Insurance Authority, which resulted in FWD Management Holdings Ltd., the sole subsidiary intermediate holding company of FWD Ltd., being designated an insurance group under the framework. This changed the regulatory classification of Fitch's assessment of FWD Ltd.'s credit profile to 'group solvency' from 'ring fencing', according to our criteria,” Fitch said in a press release.

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