KUALA LUMPUR, Oct 14 -- AM Best has affirmed the Financial Strength Rating of A+ (superior) and the Long-Term Issuer Credit Rating of ‘aa-’ of Construction Guarantee Cooperative (CG), South Korea.
With stable outlook on these credit ratings, it reflects CG’s balance sheet strength, which AM Best categorised as strongest, as well as its strong operating performance, favourable business profile and appropriate enterprise risk management.
CG’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio is at the strongest level, supported by the company’s large absolute capital base and extremely low underwriting and asset leverage.
Its conservative investment strategy, which prioritises liquidity to secure funds for guarantee claims and to provide loans to members, adds stability to its strong capitalisation, according to a statement.
Established in 1963 based on the Korea Construction Financial Cooperative Law, CG is owned 100 per cent by its members who comprise the majority of the general construction companies in South Korea.
CG has diversified its business by expanding into overseas projects and the insurance business to mitigate its risk concentration in the domestic construction guarantee business.
AM Best is a global rating agency and information provider with an exclusive focus on the insurance industry. More information at www.ambest.com.
-- BERNAMA
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