Fitch Downgrades Asian Alliance Insurance's National IFS Rating to 'BBB(lka)'
Fitch Ratings-Hong Kong/Colombo/Singapore-27 October 2014: This commentary replaces the version published earlier today to correct the action taken on the IFS rating. The corrected version is as follows:
Fitch Ratings Lanka has downgraded Sri Lanka-based Asian Alliance Insurance PLC's (AAIP) National Insurer Financial Strength Rating and National Long-Term Rating to 'BBB(lka)' from 'BBB+(lka)' and placed both ratings on Rating Watch Negative(RWN). The agency has also placed AAIP's Insurer Financial Strength (IFS) Rating of 'B' on RWN.
KEY RATING DRIVERS
The one-notch downgrade of AAIP's national ratings follows the significant deterioration of its ultimate parent Softlogic Holdings Plc's (SHL; BBB-(lka)/RWN) credit profile which is reflected by SHL's two-notch downgrade on 2 October 2014. SHL's weaker credit profile reduces its ability to provide AAIP with additional capital to support growth if require