Fitch Ratings said July 8 that it affirmed 's insurer financial strength rating at A+, with a negativeoutlook.
The insurer's rating reflects expectations that it will maintainits solid capitalization and robust franchise, the rating agency said. It addedthat the insurer's biggest weakness is its domestic equity holdings, whichcomprised 11% of its assets as of the end of March.
Fitch said an upgrade of the insurer's rating is unlikely inthe near future as the rating is constrained by Japan's long-term issuerdefault rating.
Conversely, the company's rating could be downgraded ifJapan's rating is downgraded. A downgrade could also result from an erosion ofcapitalization, deterioration in the insurer's net leverage to above 4x, or anunexpected surge in the combined ratio.
A decline in the consolidated solvency margin ratio of theinsurer's parent company, TokioMarine Holdings Inc., to below 600% may also trigger a downgrade inTokio Marine & Nichido Fire Insurance's ratings.