IFS Capital : News Release by A.M. Best on ECICS Limited's Rating

2/18/2017 General Announcement::News Release - A.M. Best Affirms Credit Ratings of ECICS Limited

Issuer/ Manager	IFS CAPITAL LIMITED
Securities	IFS CAPITAL LIMITED - SG1A35000706 - I49
Stapled Security	No

General Announcement::News Release - A.M. Best Affirms Credit Ratings of ECICS Limited Issuer & Securities

Announcement Details

Announcement Title	General Announcement
Date & Time of Broadcast	18-Feb-2017 09:43:10
Status	New
Announcement Sub Title	News Release - A.M. Best Affirms Credit Ratings of ECICS Limited
Announcement Reference	SG170218OTHRXGEC
Submitted By (Co./ Ind. Name)	Chionh Yi Chian
Designation	Company Secretary
Description (Please provide a detailed description of the event in the box below)	Please refer to the attached news release by A.M. Best on the credit ratings of ECICS Limited (a wholly-owned subsidiary of IFS Capital Limited).
Attachments	News Release_A.M. Best Rating on ECICS 2017.pdf Total size =174K

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FOR IM'.1EDIATE RELEASE

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A.:v1. Best Affirms Credit Ratings of ECICS Limited

SINGAPORE, February 17, 2017-A.M. Best has affmned the Financial Stiength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of ..a-.. of ECICS Limited (ECICS) (Singapore). The outlook of these Credit Ratings (ratings) is negatiYe.

The rating affnmations reflect ECICS ·strong balance sheet. underpinned by low undenniting lewrage and a prndent investment portfolio.

The negative outlooks reflect the company's continued losses and diminished business profile. Since 2014, ECICS has been working to grow outside of its core bond insurance business. which is a small and cyclical 1narket segn1ent. Althougl1 the co111pany has 111ade son1e inroads into other general insurance seginents, notably motor. this line remains loss-making. The resulting strain on profitability has been greater than expected, and ECICS' operating perfonnance has fallen below the indust1y average.

Positive rating actions could occur if ECICS is able to achieve consistent profitability while strengthening its business profile. A significant reduction of ECICS' risk-adjusted capitalization or deterioration in operating perfonnance could result in negatiYe rating actions.

Ratings are conuuunicated to rated entities prior to publication. Unless stated othervise, the ratings \'ere not a1nended subsequent to that co1rununication.

This J)ress release relates to Credit Ratings tltat haw been pu blished on A.'.1. Best's website. For all

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OLDWICK. N.J. • WASHINGTON. D.C. • MEXICO CITY • LONDON • DUBAI • SING,! PORE • HONG KONG

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rating information relating to the release and pertinent clisdosures, inducling details of the office responsible for issuing rach of the indiidual ratings referenced in this releast>, please see .A••M .Best's Recent Rating Activitv web page. For additional information regarding the use and limitations of Credit Rating opinions, please ,ie,v l Tnderstanding Best's Credit Ratings.

A.M.Best is the ,vorld's oldest and most authoritative insurance rating and infor1nation source. For more information, visit \YY.a1ubcst.co 1n.

Copyright @ 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.

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