Moody’s reviews Peak Re for downgrade

Moody’s Investors Service said it placed Peak Reinsurance Co. Ltd.’s Baa2 (hyb) rating on review for downgrade.

The decision to review Peak’s rating was prompted by Moody’s decision to review the Ba3 corporate family rating of its majority shareholder Fosun International Ltd. for a downgrade, the agency said.

“The rating action on Peak Re mainly reflects Moody's concern that contagion risks to Peak Re will increase as Fosun's credit profile weakens. The contagion risks, particularly via reputational damage, could increasingly strain Peak Re's business growth and capital market access. In addition, Moody's considers the contagion risks that Fosun might influence Peak Re's risk appetite,” the agency said in a press release.

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