A.M. Best has downgraded the Financial Strength Rating to B+ (Good) from B++ (Good) and the Long-Term Issuer Credit Rating to "bbb-" from "bbb" of Tugu Insurance Co. Ltd. (TIC) (Hong Kong). The outlook of these Credit Ratings (ratings) is negative.
The ratings reflect TIC's balance sheet strength, which A.M. Best categorizes as strong, as well as its marginal operating performance, limited business profile and marginal enterprise risk management (ERM).
The negative outlooks are based primarily on uncertainty regarding TIC's capitalization. It also reflects the company's low liquidity buffers.
