AM Best has downgraded the outlook of Sorford Surety Insurance, the Bermuda based subsidiary of IBT Group, to negative from stable.
IBT is a subsidiary of Eurofinsa SA. Both are members of a multinational group of companies specialising in the development, design, construction, equipment and finance of public infrastructure projects around the world.
AM Best also downgraded Sorford’s issuer credit rating to "bb" from "bb+" and affirmed the financial strength rating of B (Fair).
“Sorford’s risk-adjusted capitalisation is relatively adequate for its rating level; however, the ICR downgrade reflects concerns associated with the company’s lack of sustainable business volume since its inception in 2010 and the related deterioration of capital and surplus due to administrative expenses,” said the rating agency.
AM Best added that it was concerned with Sorford’s ability to meet the assumptions included in its business plan, along with the impact of economic volatility and the possibility that Sorford could be exposed to a confluence of events that will test its capital strength.
Sorford Surety Insurance, AM Best, Bermuda, IBT Group