Published: July 14, 2014 - London
- Following Doha Insurance Co.'s successful rights issue of Qatari riyal
437 million, we now have a more favorable view of the company's depth of
capital and the likely development of its risk profile.
- We expect that Doha will use the proceeds to fund growth of its
underwriting activities, and not to increase its level of investment
risk. As a result, we believe its capital adequacy relative to its likely
risk exposure development will sustainably improve, making its balance
sheet more resilient to sudden shocks.
- We are therefore raising the ratings on Doha to 'A-' from 'BBB+'.
- The stable outlook reflects our view that Doha will maintain its
extremely strong capital adequacy as the company expands its franchise
outside of Qatar, without a material increase in investment risk or
capital extraction through special dividends.
LONDON (Standard & Poor's) July 14, 2014--Standard & Poor's Ratings Services
said today that it raised the insurer financial strength and counterparty
credit ratings on Qatar-based Doha Insurance Co. to 'A-' from 'BBB+'. The
outlook remains stable.