A.M. Best has downgraded the Financial Strength Rating to B (Fair) from B+ (Good) and the Long-Term Issuer Rating to bb+ from bbb- of Kenya Reinsurance Corp. Ltd. (Kenya Re) (Kenya). The outlook of these Credit Ratings (ratings) has been revised to stable from negative.

The ratings reflect Kenya Re's balance sheet strength, which A.M. Best categorises as very strong, as well as its adequate operating performance, neutral business profile and weak enterprise risk management (ERM).

The rating actions are the result of A.M. Best's concerns over the effectiveness of Kenya Re's ERM in the face of expected business growth and increasingly sophisticated competition. Additionally, there are uncertainties related to the company's ability to grow its capital resources at the same rate that it increases its revenue over the longer term.