Rating Action Commentary
ֳ Assigns GuarantCo First-Time 'AAA(idn)' National IFS Rating; Outlook Stable
Mon 24 Jun, 2024 - 8:58 AM ET
ֳ - Jakarta - 24 Jun 2024: ֳ Indonesia has assigned GuarantCo Ltd. a National Insurer Financial Strength (IFS) Rating of 'AAA(idn)'. The Outlook is Stable.
GuarantCo's International IFS Rating of 'AA-' with Stable Outlook is not affected by this rating action.
'AAA(idn)' National IFS Ratings denote the highest rating assigned within the National Ratings scale for that country or monetary union. The rating is assigned to the policyholder obligations of the insurance entities with the lowest credit risk relative to all other obligations or issuers in the same country, across all industries and obligation types.
Key Rating Drivers
The National IFS Rating is directly linked to GuarantCo's International IFS rating based on the National Ratings Correspondence Table for Indonesia.
GuarantCo's International IFS rating reflects the continued propensity and ability of the UK, GuarantCo's key stakeholder, to support its financial strength, as well as the company's 'Very Strong' risk-adjusted capitalisation. This is offset by its weak profitability.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
- A multi-notch downgrade of GuarantCo's International IFS rating
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
- GuarantCo's National IFS Rating is already at the highest possible level and therefore cannot be upgraded.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
Additional information is available on
PARTICIPATION STATUS
The rated entity (and/or its agents) or, in the case of structured finance, one or more of the transaction parties participated in the rating process except that the following issuer(s), if any, did not participate in the rating process, or provide additional information, beyond the issuer’s available public disclosure.
APPLICABLE CRITERIA
ADDITIONAL DISCLOSURES
ENDORSEMENT STATUS
| GuarantCo Ltd. | EU Issued, UK Endorsed |