A.M. Best has downgraded the financial strength rating to A- (excellent) from A (excellent) and issuer credit rating to “a-” from “a” of PMG Assurance (PMG). The outlook for both rating is negative.
Bermuda based, PMG, a subsidiary of Sony Corporation, has been downgraded due to Sony’s credit risk profile. Despite PMG’s strong capital strength its risk profile is compromised as a captive for Sony Corporation.
“The captive continues to be an integral component of Sony Corporation’s risk management platform. In A.M. Best’s opinion, the third party credit ratings as well as market based credit risk measures of Sony Corporation, indicates negative rating pressure on PMG,” said the ratings firm.
Negative rating movement might occur to PMG if there is any downward movement in Sony’s risk profile. Any upward rating is based on improvement in Sony’s risk profile and maintenance of the captive’s capital strength.