Ratings has upgraded Sri Lanka Insurance Corporation Limited’s (SLIC) Insurer Financial Strength (IFS) Rating to ‘B+’ from ‘B’. The Outlook is Stable.
The Under Criteria Observation status on the IFS Rating has also been removed. Fitch has simultaneously upgraded SLIC’s National IFS Rating to ‘AAA(lka)’ from ‘AA+(lka)’ with a Stable Outlook.
The upgrade follows the revision of Fitch’s global Insurance Rating Criteria in January 2019. SLIC’s IFS rating was previously capped by the sovereign constraint set at ‘B’, which is the Long-Term Local-Currency Issuer Default Rating of Sri Lanka.
The new criteria remove the top-down sovereign constraint and Fitch assesses SLIC’s country risk in each criteria factor under a bottom-up analysis.
The agency has assessed that the positive impact from the removal of the top-down sovereign constraint exceeds the negative pressure from the revised bottom-up country-risk assessment.
Add new comment