Standard & Poor's (S&P) Ratings Services has removed the long-term counterparty credit and insurer financial strength ratings on Bahrain National Insurance Company (bni).

It was removed from CreditWatch, where they had been placed with negative implications on February 24.

The outlook is negative. At the same time, the agency has affirmed the 'BBB' ratings, and the GCC regional scale rating at 'gcAA-'.

"Under our ratings criteria, sovereign risk is a key factor influencing the financial strength of insurers," the agency said.

"As a result, the vast majority of insurers are rated no higher than the relevant sovereign local currency rating. Consequently, the outlook on bni's ratings is negative, reflecting our view of increasing sovereign-related risk," it added. – TradeArabia News Service