AM Best has revised the Long-Term Issuer Credit Rating (Long-Term ICR) outlook to negative from stable and affirmed the Financial Strength Rating (FSR) of B (Fair) and the Long-Term ICR of 'bb+' (Fair) of
The outlook of the FSR is stable.
The Credit Ratings (ratings) reflect Adamjee's balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM).
The Long-Term ICR outlook revision to negative reflects pressure on Adamjee's credit fundamentals from heightened economic, financial system and political risk in
Adamjee's balance sheet strength assessment is underpinned by its risk-adjusted capitalisation, as measured by Best's Capital Adequacy Ratio (BCAR), at the very strong level at year-end 2021. Although it benefits from some investment diversification achieved through assets held in the
Adamjee has a history of robust profitability, with profits before tax ranging from
ERM is viewed to be appropriate given the size and complexity of Adamjee's operations. However, the company's risk profile has increased recently as a result of the deteriorating risk environment in
This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
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