HONG KONG, June 13 (Bernama-BUSINESS WIRE) -- A.M. Best has downgraded the financial strength rating to B++ (Good) from A- (Excellent) and the issuer credit rating to “bbb” from “a-” of Macau Life Insurance Company Limited (MLIC) (Macau). Additionally, A.M. Best has placed the ratings under review with developing implications.
 
The ratings downgrade reflects the anticipated diminished implicit and explicit support that MLIC will receive from its immediate parent company, Macau Insurance Company Limited (MIC), and both companies’ ultimate parent, Dah Sing Financial Holdings Limited (DSFH), following the June 2, 2016, announcement that DSFH and MIC have entered into an agreement for the divestment of 100% of MLIC’s shares. The acquirer is Fujian Thai Hot Investment Co., Ltd. (Thai Hot), a Fujian, China-based company that invests in China’s property, health care and financial services sectors. The under review status reflects the limited information A.M. Best has on Thai Hot and the heightened uncertainty surrounding the company’s credit profile and how future business plans could impact MLIC.
 
MLIC’s ratings will remain under review until the close of the transaction, which is expected in fourth-quarter 2016, and A.M. Best completes its discussions with the company’s management team. In addition, any potential rating impact from actual or anticipated changes to MLIC’s credit profile and business plans will be assessed. Additionally, A.M. Best will factor its view of Thai Hot’s credit profile into the final rating determination.
 
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
 
This press release relates to rating(s) that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page.
 
A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
 
Copyright © 2016 by A.M. Best Rating Services, Inc. ALL RIGHTS RESERVED.
 
Contacts
A.M. Best
Ken Chow, +852 2827 3426
Senior Financial Analyst
ken.chow@ambest.com
or
Moungmo Lee, +65 6589 8412
Managing Director, Analytics
moungmo.lee@ambest.com
or
Christopher Sharkey, +1 908 439 2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1 908 439 2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com

Source: A.M. Best
 
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http://www.businesswire.com/news/home/20160610005706/en
 
--BERNAMA