IslamicFinance.de

Dubai Islamic Insurance & Reinsurance Co. (Aman) has announced a loss of AED 51.6 million at year-end 2013 that has impaired its capital adequacy. Given that this loss represents about half of Aman's shareholders' equity, S&P consider that Aman's capital and earnings position and overall financial profile have weakened significantly. The rating agency is therefore lowering its ratings on Aman to 'BB+' from 'BBB-' and placing them on CreditWatch negative. S&P also believes that Aman's retained earnings over the next two years are unlikely to be sufficient to rebuild its capital adequacy to levels consistent with higher ratings.