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Friday, 15 May 2009

Arab Orient Insurance Co. (PSC) 'A' Ratings Placed On Watch Negative Due To Operating Pressure On Its Parent

Standard & Poor's Ratings Services said today that it placed its 'A' long-term counterparty credit and insurer financial strength ratings on Dubai-based non-life insurer Arab Orient Insurance Co. (PSC) on CreditWatch with negative implications.

"The CreditWatch placement reflects our concerns that Arab Orient's parent, the Al-Futtaim Group, is heavily exposed to the deteriorating operating environment in Dubai," said Standard & Poor's credit analyst Nigel Bond.

Similar concerns have led to Standard & Poor's taking negative rating actions recently on various corporates (see "Ratings On Dubai Government-Related Entities Put On Creditwatch Negative On Uncertainty Over Support," published April 30, 2009, on RatingsDirect) and banks ("Four Dubai-Based Banks Long-Term Ratings Placed On CreditWatch Negative On Deteriorating Operating Environment," published March 17, 2009).

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