Standard & Poor's Ratings Services affirmed its BBB+ long-term local currency insurer financial strength and counterparty credit ratings on the reinsurer Thai Reinsurance Plc.
It kept the outlook negative and affirmed the axA+ long-term Asean regional scale rating on the reinsurer.
"We affirmed the ratings to reflect our view of Thai Re's satisfactory business risk profile and lower adequate financial risk profile, built on the company's adequate competitive position and upper adequate capital and earnings," said S&P's credit analyst Philip Chung.
S&P's said Thai Re's competitive position is adequate, stemming from its long-standing relationship with cedents in Thailand. Its performance remains volatile because of the ongoing effects of the Thailand floods in 2011.
The reinsurer strengthened its reserves significantly in the third quarter of 2013, based on the assessment by an independent adjustor.
"We expect Thai Re's prospective earnings strength to rebuild its capital adequacy to adequate levels by 2015."