Moody's may upgrade Pacific Century Insurance

Moody's Investors Service said it placed the Baa2 insurance financial strength rating of Pacific Century Insurance Co. Ltd. and the Baa3 backed senior unsecured rating of PCI Capital Ltd. on review for possible upgrade following the announcement that Fortis Insurance International NV has agreed to acquire 50.48% of the shares of Pacific Century's holding company, Pacific Century Insurance Holdings Ltd., from Pacific Century Regional Developments and executive chairman Francis Yuen for a total cash consideration of HK$3.5 billion.

Fortis' ratings were unaffected by this transaction.

The agency said Pacific Century's business and financial profile will likely benefit from additional support and financial resources as a result of being part of a large financial conglomerate like Fortis.

Moody's review will focus on the level of implicit and explicit support to be provided by Fortis, Pacific Century's business strategy, management structure and capital management policy going forward and its integration with Fortis.

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