SINGAPORE--(BUSINESS WIRE)--AM Best has placed under review with negative implications the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb+” (Good) of Fubon Insurance Vietnam Co., Ltd. (Fubon Vietnam) (Vietnam).
This Credit Rating (rating) action follows AM Best’s downgrade of the Long-Term ICR of Fubon Vietnam’s parent company, Fubon Insurance Co., Ltd. (Fubon Insurance) (Taiwan) on 3 February 2023 (see related press release). AM Best downgraded Fubon Insurance’s Long-Term ICR to “a” (Excellent) from “a+” (Excellent) while affirming its FSR of A (Excellent), and also placed the ratings under review with negative implications. That recent development was the result of weakened financial strength and ongoing uncertainty around the credit profile of Fubon Insurance. Fubon Vietnam’s ratings incorporate rating enhancement from its ownership and integration with Fubon Insurance. As a result, AM Best needs to assess the impact of further near-term developments on the credit profile of Fubon Insurance to determine its continued ability to provide explicit support to Fubon Vietnam.
The under review with negative implications status on Fubon Vietnam’s ratings reflects the need for AM Best to fully assess the company’s eligibility to continue receiving rating enhancement prospectively. The ratings will remain under review pending completion of AM Best’s assessment of the credit rating fundamentals of Fubon Insurance.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
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