JCR-VIS Revises IFS rating of Pakistan Industrial Credit and Investment Corporation Insurance Limited to BBB+,

Karachi, December 13, 2012 (PPI-OT): JCR-VIS Credit Rating Company Limited has revised the Insurer Financial Strength rating of PICIC Insurance Limited (PICIC) to ‘BBB+’ (Triple B Plus) from ‘A-’ (Single A Minus). Outlook on the rating is ‘Stable’.

The rating decision takes into account weakening in risk absorption capacity of the institution; capitalization level of PICIC has witnessed weakening over time on account of increase in accumulated losses primarily emanating from underwriting operations. External equity injection is required to reinstate the risk profile of the institution.

Operating cash flows of the company have witnessed improvement in the on-going year and there has been a reduction in insurance debt as well. Continuity of these trends will lend support to overall liquidity profile of the company. Underwriting standards have also been strengthened in the on-going year and results of the same will be tested over time.

For more information, contact:
Mr. Javed Callea
JCR-VIS Credit Rating Company Limited
Tel: +9221 35311861 (10 lines) (Ext: 501)
Fax: +9221 35311872-3
E mail: javed.callea@jcrvis.com.pk

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