FITCH RATINGS AFFIRMS ‘A’ RATINGS OF MALAYSIAN REINSURANCE BERHAD ON SOVEREIGN OUTLOOK REVISION

1 Aug 2013

Kuala Lumpur, 1 August 2013 – Fitch Ratings has affirmed Malaysian Reinsurance Berhad''s (“Malaysian Re”) Insurer Financial Strength rating (IFS) at ‘A’, following Fitch’s revision of Malaysia’s Outlook to Negative from Stable.  Fitch Ratings also confirmed the Outlook is Stable.
 
The affirmation of Malaysian Re follows the revision on Malaysia''s Outlook to Negative from Stable.  The sovereign''s Long-Term Foreign and Local Currency Issuer Default Ratings (IDR) Malaysian Re''s ''A'' IFS rating is currently at the same level as the sovereign''s Local Currency IDR.  Under Fitch''s insurance criteria, very strong organisations can typically be rated one to two notches above the sovereign IDR.
 
In the case of Malaysian Re, Fitch is of the view that it may be rated one notch higher than the Local Currency IDR of ''A'', reflecting the reinsurer''s strong market profile, consistently sound operating performance, solid capital and low exposure to sovereign debt.
 
A copy of the Press Release issued by Fitch Ratings dated 31 July 2013 is attached.
 
Malaysian Re is Malaysia’s leading reinsurance company and is a wholly-owned subsidiary of MNRB Holdings Berhad (MNRB).  
 
Fitch Ratings is a leading global rating agency with dual-headquarters in New York and London covering entities in more than 90 countries, including IFS ratings on over 2,000 insurance companies. Fitch Ratings first rated Malaysian Re in 2006.