A.M. Best Downgrades PMG Assurance Ltd
A.M. Best Co. has downgraded the financial strength rating to A- (Excellent) from A (Excellent) and issuer credit rating to “a-” from “a” of PMG Assurance Ltd. (PMG) (Bermuda). The outlook for both ratings is negative.
A statement from the ratings agency said: “The rating downgrades for PMG reflect the overall change in its parent company, Sony Corporation’s (Japan) credit risk profile. While PMG exhibits continued strong capital strength, its risk profile is compromised as a captive for Sony Corporation.
“Over the last year, Sony Corporation’s credit risk profile has significantly decayed, which by the nature of PMG’s relationship, has resulted in these rating actions. The captive continues to be an integral component of Sony Corporation’s risk management platform. In A.M. Best’s opinion, the third party credit ratings as well as market based credit risk measures of Sony Corporation, indicates negative rating pressure on PMG.
“Negative rating movement might occur to PMG’s ratings if there is any significant downward movement in Sony Corporation’s risk profile. Any upward rating movement to PMG’s ratings is predicated on improvement in Sony Corporation’s risk profile coupled with maintenance of the captive’s capital strength.”
