Ratings agency AM Best has withdrawn the ratings Sorford Surety Insurance, the captive of IBT Group, as per the request of the company following the downgrade of its financial strength rating to B- (Fair) from B (Fair).
The outlook assigned to the ratings were negative, and reflects Sorford’s risk-adjusted capitalisation, which is relatively adequate for its rating level.
AM Best added that the downgrade also reflect concerns associated with Sorford’s lack of sustainable business volume since its inception in 2010 and the related deterioration of capital and surplus due to administrative expenses.
IBT Group is a subsidiary of Eurofinsa. Both Eurofinsa and IBT are members of a multinational group of companies that specialise in the development, design, construction, equipment and finance of public infrastructure projects around the world.
“The negative rating outlooks reflect the uncertainty of the company’s fundamental business strategies, ongoing concern about implementation and execution risk, as well as management’s lack of communication and silence relating to the interactive rating process,” said AM Best.
Did you enjoy reading this story? Sign up to our free weekly newsletters and get stories like this sent straight to your inbox.
IBT Group, Sorford Surety, Captive, Ratings, AM Best, North America, UK