The ratings reflect TPR’s adequate risk-adjusted capitalization, as well as its strong and consistent operating performance since inception. TPR is an affiliate of AirAsia Berhad and its associates (the
Offsetting rating factors include low earnings retention and geographic concentration risk. Despite continued improvement in its risk-adjusted capitalization, TPR’s high dividend payout ratio has led to fluctuations in its BCAR. Additionally, because of TPR’s close ties to the
Positive rating actions could result from TPR establishing a stable and strong BCAR trend that is supported by an effective capital management policy and profitable premium growth. Negative rating pressure could arise from a lower-than-expected BCAR or deterioration in operating performance. Deterioration in AirAsia Group’s business profile or financial strength also could result in negative pressure on TPR’s ratings.
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. For information on the proper media use of Best’s Credit Ratings and
Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.
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