S&P Affirms China Pacific Property Insurance's A Ratings

MT Newswires Live08-21

S&P Global Ratings maintained China Pacific Property Insurance's A long-term local currency insurer financial strength and issuer credit ratings, noting that its revised criteria for insurers' risk-based capital does not affect the parent's overall credit profile or the company's standalone credit profile.

In a Wednesday note, the rating agency said its view of the capital and earnings of parent China Pacific Insurance (HKG:2601, SHA:601601) remains satisfactory, on top of a stronger assessment of its capital buffer under the revised capital criteria.

The ratings have a stable outlook, based on S&P's belief that the insurer will continue to be a sore subsidiary of China Pacific Insurance in the next two years.

A rating downgrade will hinge on an erosion in the parent's capital and earnings in the next two years, while an upgrade, although unlikely, will depend on a stronger capital position and significant improvements in its competitive advantages.

Price (HKD): $18.54, Change: $-0.82, Percent Change: -4.24%

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