21 August 2023news

Fitch affirms Monticello ratings

Fitch has confirmed that it has affirmed Monticello Insurance Limited's (MIL) Insurer Financial Strength (IFS) rating at 'BBB' with a stable outlook.

The rating agency said that it considers MIL a core captive of Vale and therefore, the insurer's rating is linked to the parent's rating, as they generally receive an IFS rating equal to the IDR of the captive's parent.

Fitch explained that this is because the insurer's mission and goals are tied to Vale's risk management and risk financing strategy. All of MIL's business is derived from the parent, and the insurer is not viewed as a profit centre. Its objective is to improve Vale's efficiency and to support efforts to optimize the operational and financial activities.

“Vale has made a reasonable financial support to MIL and appears to support its continued solvency and viability through revolving loan agreements and issues letters of credit (LOCs) to fronting insurers and provides timely capital injections when needed,” Fitch said. “The last major injections totalled $241 million in 2012 and 2013. Since then, there has been no need for such support.”


More on this story

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5 December 2023   The company is a captive of Hyundai Motor Group.
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10 November 2023   The healthcare system includes a jointly run captive.
Analysis
20 October 2022   Stable outlook attached to pair of Luxembourg-based companies.

More on this story

news
5 December 2023   The company is a captive of Hyundai Motor Group.
news
10 November 2023   The healthcare system includes a jointly run captive.
Analysis
20 October 2022   Stable outlook attached to pair of Luxembourg-based companies.