Cairo - Mubasher: Moody's Investors Service (Moody's) has affirmed the insurance financial strength rating (IFSR) of GIG Insurance - Egypt (GIG Egypt), a subsidiary of Kuwait-based Gulf Insurance Group (GIG), at 'Ba2' and changed the outlook to negative from stable.
Affirming GIG Egypt's rating shows the company's stand-alone credit profile and the parent company's support, resulting in placing GIG Egypt's rating three notches above the Egyptian sovereign rating, according to a recent press release.
Moody's rating was also affected by to its recent decision to change the outlook to negative from stable for the B2 senior unsecured bond rating of the Egyptian government.
"Negative macro-economic developments in the country would likely to place pressure on GIG Egypt's credit profile because of its strong linkage to the sovereign through its whole operations/business and the vast majority of its assets being domiciled in Egypt," the rating agency referred.
The global rating agency referred that this rating action will not have an impact on all the other ratings of the GIG Group.
