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FOR IMMEDIATE RELEASE
MEXICO CITY - SEPTEMBER 14, 2017 03:22 PM (EDT)
A.M. Best has removed from under review with negative implications and downgraded the Financial Strength Rating to a Non-Rating Designation of “F” (In Liquidation) from C- (Weak), the Long-Term Issuer Credit Rating to a Non-Rating Designation of “f” from “ccc-” and the Mexico National Scale Rating to a Non-Rating Designation of “f” from “ccc-.MX” of Nezter Seguros, S.A. de C.V. (Nezter Seguros) (Mexico City, Mexico).
These Credit Rating (rating) actions reflect the revocation of the authorization granted to Nezter Seguros by Mexico’s Ministry of Finance and Public Credit to operate as an insurance institution. This stemmed from Nezter’s failure to implement the corrective actions that it presented to the Mexican regulator to resolve the shortfall in its minimum paid capital. Such actions are stated in an official notice issued in Diario Oficial de la Federación (Official Gazette) dated Sept. 7, 2017.
The revocation under the Insurance and Surety Institutions Act (Ley de Instituciones de Seguros y de Fianzas) prohibits Nezter Seguros from granting any insurance from the date of the revocation notice and puts the company in a state of dissolution and administrative liquidation.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
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• Previous Rating Date: July 6, 2017
• Date of Financial Data Used: April 30, 2017
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