AM Best Downgrades Issuer Credit Rating of Sompo International Holdings Ltd.; Affirms Issue Credit Ratings on Debt Issuances

BY Business Wire | CORPORATE | 09/23/22 12:35 PM EDT

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has downgraded the Long-Term Issuer Credit Rating of Sompo International Holdings Ltd. (SIH) (Pembroke, Bermuda) from ?a? (Excellent) to ?a-? (Excellent). The downgrade is to harmonize the intermediate holding company Credit Ratings (ratings) of SIH with the Financial Strength Ratings of Sompo Japan Insurance Inc. (The ratings of the insurance operating companies of SIH. remain unchanged. Please see related press release dated Sept. 16, 2022.)

Concurrently, AM Best has affirmed the Long-Term Issue Credit Ratings (Long-Term IRs) of ?a-? (Excellent), which are guaranteed by SIH. The outlook of these ratings is stable.

The following Long-Term IRs have been affirmed with stable outlooks:

Sompo International Holdings Ltd.?
-- ?a-? (Excellent) on $335 million 7% senior unsecured notes, due 2034 (issued by Endurance Specialty Holdings Ltd. and guaranteed by Sompo International Holdings Ltd.)
-- ?a-? (Excellent) on $300 million 4.7% senior unsecured notes, due 2022 (issued by Montpelier Re Holdings Ltd. and guaranteed by Sompo International Holdings Ltd.)

This press release relates to Credit Ratings that have been published on AM Best?s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best?s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best?s Credit Ratings, Best?s Performance Assessments, Best?s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best?s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright ? 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Source: AM Best

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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