S&P downgrades Al Sagr rating on higher regulatory risk

Standard and Poor's (S&P) downgraded the credit rating of Al Sagr Cooperative Insurance Co. from BBB to BBB- with a negative outlook due to high level of regulatory risk, the company said in a statement to Tadawul.

The rating comes after The Saudi Arabian Monetary Authority (SAMA) has issued a letter to Al Sagr including a final warning regarding violations related to governance and internal control practices.

Putting credit ratings under control reflects the possibility that S&P will adjust its assessment of governance, governance and / or corporate risk management if the company fails to address the violations during the period specified in the letter, leading SAMA to take a legal action against the insurer. The agency aims to make its decision on credit rating within 90 days, the statement added.