The rating downgrades reflect the reduced risk-adjusted capitalization due to a dividend payment made in 2016, which exceeded the total net income it generated in the past three fiscal years, and EICL’s issuance of a loan to the parent company,
Positive rating action is unlikely in the near term. Negative rating action could occur if EICL’s absolute capitalization declines materially or its risk-adjusted capitalization further decreases sharply.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
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