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Bermuda,United States : A.M. Best Downgrades Ratings of PMG Assurance Ltd.

A.M. Best Co. has downgraded the financial strength rating to A- (Excellent) from A (Excellent) and issuer credit rating to a- from a of PMG Assurance Ltd. (PMG) (Bermuda). The outlook for both ratings is negative.

The rating downgrades for PMG reflect the overall change in its parent company, Sony Corporation s (Japan) credit risk profile. While PMG exhibits continued strong capital strength, its risk profile is compromised as a captive for Sony Corporation.

Over the last year, Sony Corporation s credit risk profile has significantly decayed, which by the nature of PMG s relationship, has resulted in these rating actions. The captive continues to be an integral component of Sony Corporation s risk management platform. In A.M. Best s opinion, the third party credit ratings as well as market based credit risk measures of Sony Corporation, indicates negative rating pressure on PMG.

Negative rating movement might occur to PMG s ratings if there is any significant downward movement in Sony Corporation s risk profile. Any upward rating movement to PMG s ratings is predicated on improvement in Sony Corporation s risk profile coupled with maintenance of the captive s capital strength.

A.M. Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world.

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Publication:Mena Report
Date:Sep 29, 2012
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