Ratings of Razi Lowered following Sovereign Action and Withdrawn

Overview

Capital Intelligence Ratings (CI Ratings or CI), the international credit rating agency, today announced that it has lowered the Long-Term Insurer Financial Strength Rating and Long-Term National Scale Rating of Razi Insurance Company (Razi)  to 'B' and 'irA-', respectively, from 'B+' and 'irA+'. At the same time, CI Ratings has affirmed Razi's Short-Term Insurer Financial Strength Rating and Short-Term National Scale Rating at 'B' and 'irA2', respectively.  The Outlook for all ratings has been revised to Stable from Negative.

The rating action follows the downgrade of Iran's Sovereign Long-Term Foreign Currency Rating to 'B' from 'B+' and the revision of the Outlook to Stable from Negative in May 2019. The sovereign downgrade reflects CI's view that the recent tightening of US sanctions will intensify the economic downturn and further escalate external political tensions in 2019. In CI's opinion, the projected weakening of Iran's economic outlook and the country's susceptibility to event risk are consistent with a 'B' rating.

Concurrent with this rating action, CI has withdrawn all credit ratings and discontinued analytical coverage of Razi. The decision to withdraw the ratings has been taken by CI for business reasons.

Attachments

• Credit Rating Announcement (CRA)
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