HONG KONG--(BUSINESS WIRE)--
A.M. Besthas removed from under review with negative
implications and affirmed the financial strength rating of A-(Excellent)
and issuer credit rating of “a-” of Hyundai Insurance (China) Co.,
Ltd.(HIC) (China) The outlook assigned to both ratings is stable.
The rating action follows a capital injection by HIC’s parent company, Hyundai
Marine & Fire Insurance Co., Ltd. (HMFI) (South Korea), and the
reduction in reinsurance recoverables, which is related to the September
2013 fire at the factories of SK Hynix Inc. In addition, the ratings
consider the implicit and explicit support that HIC receives from HMFI.
HIC is a wholly owned subsidiary of HMFI.
In December 2013, the ratings of HIC were placed under review to reflect
the large fire losses at the SK Hynix factories in Wuxi, China. While
HIC’s net loss is limited to USD 1 million, its risk-adjusted
capitalization deteriorated materially due to a spike in reinsurance
recoverables, related to credit risk and concerns over liquidity.
The methodology used in determining these interactive ratings is Best’s
Credit Rating Methodology, which provides a
comprehensive explanation of A.M. Best’s rating process and contains the
different rating criteria employed in the rating process. Best’s Credit
Rating Methodology can be found at www.ambest.com/ratings/methodology.
Ratings are communicated to rated entities prior to publication, and
unless stated otherwise, the ratings were not amended subsequent to that
This rating announcement has been issued by A.M. Best Asia-Pacific
Limited, which is a subsidiary of A.M. Best Company. A.M. Best
Company is the world's oldest and most authoritative insurance rating
and information source. For more information, visit www.ambest.com.
Copyright © 2014 by A.M. Best Company, Inc.ALL RIGHTS
Seewon Oh, +852-2827-3404
Peavy, +(1) 908-439-2200, ext. 5644
President, Public Relations
Source: A.M. Best