BLUE CROSS CREDIT RATINGS PLACED UNDER REVIEW WITH DEVELOPING IMPLICATIONS - AM BEST

KUALA LUMPUR, March 10 (Bernama) -- AM Best has placed under review with developing implications the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of ‘a’ (Excellent) of Blue Cross (Asia-Pacific) Insurance Limited (Blue Cross) Hong Kong.

Blue Cross is a wholly-owned subsidiary of The Bank of East Asia, Limited (BEA) in Hong Kong, according to a statement.

This Credit Rating (rating) action follows the announcement on March 4, 2022, that BEA has entered into an agreement to sell 100 per cent of its shares in Blue Cross to AIA Holdings (Hong Kong) Limited (AIA Holdings HK), which is a wholly-owned subsidiary of AIA Group Limited.

The developing implications status reflects the need for AM Best to fully assess the level of implicit and explicit support Blue Cross will receive from AIA, as well as its strategic role in AIA's overall group strategy.

The ratings are expected to remain under review until the transaction closes and AM Best completes its evaluation of the impact of the acquisition on Blue Cross’ rating fundamentals.

The under review status may be updated in the interim period as new facts and circumstances emerge.

Headquartered in the United States, AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry.

More details at www.ambest.com.

-- BERNAMA