Standard & Poor’s has revised its credit and insurer financial strength ratings on the Bermuda-domiciled captive insurer Stellar Insurance to “A+” from “AA-”. The outlook remains negative.
Stellar Insurance, a core subsidiary of the wholly-government owned Saudi Arabian Oil, had its ratings lowered after the rating agency dropped the foreign and local currency sovereign credit ratings on Saudi Arabia to “A+” from “AA-” in October.
The change in the sovereign ratings reflects the sharp drop in the Brent oil price, which has widened the government’s fiscal deficit, according to Standard & Poor’s.
Standard & Poor’s continues to view Stellar as a core wholly-owned indirect subsidiary of the government-owned Saudi Arabian Oil. “Stellar forms an integral part of Saudi Aramco's financial risk management strategy, and is fully integrated into Saudi Aramco's operations.”
