The China Railway Captive Insurance Company has received an "A2" financial strength rating with a negative outlook from Moody’s Investors Service.
This is the first time Moody’s has assigned ratings to the China Railway Captive Insurance Company, a wholly owned subsidiary of China Railway Corporation (CRC).
The ratings reflect Moody’s view that the China Railway Insurance Company credit profile is closely aligned to CRC’s, as well as its assessment of high-level support from CRC because of its captive status.
According to Moody’s, it anticipates that the parent company will provide “operational and timely capital support” for China Railway Captive Insurance’s business growth.
Moody’s suggested that a ratings upgrade is unlikely, “given the negative outlook", as well as the company's "limited operating track record”.
However, given that the credit profile of China Railway Captive Insurance is “highly correlated” with that of its parent, Moody's said it would consider upgrading its rating "if the credit profile of CRC improves significantly”.
