SP Global Ratings lowered its long-term counterparty credit and senior debt ratings on Allied World Assurance Co. Holdings AG to ‘BBB-‘ from ‘BBB+’, following the completion of the company’s acquisition last week by Fairfax Financial Holdings.
At the same time, SP lowered its counterparty credit and financial strength ratings on Allied World’s operating companies to ‘A-‘ from ‘A’. The outlook on all these companies is stable.
“We lowered the ratings on Allied World and aligned them with those on Fairfax, as we now view Allied World as a strategically important entity to Fairfax based on its material size and strategic fit within the expanded group,” said SP, explaining that the ratings and outlook on Allied World will now move in tandem with those on Fairfax.
“The acquisition of Allied World brings a strongly performing re/insurance group under the Fairfax umbrella, but as with other Fairfax re/insurance subsidiaries, Allied World will continue to operate independently – with no anticipated revenue or expense synergies,” SP added.
Source: SP Global Ratings