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Moody's Investors Service has withdrawn the 'Baa3' insurance financial strength rating of Life Insurance Corporation of India (LIC).
Moody's said that it has withdrawn the rating for its own business reasons. As per Moody's internal guidelines, the withdrawal should not be interpreted as reflective of LIC's credit-worthiness.
According to Moody's policy, when a credit rating is withdrawn for ‘business reasons’, the reference is to its business, not that of the rated entity. It adds that this doesnot reflect any concerns about the rated entity’s credit-worthiness or the quality of its management.
LIC is is the largest life insurance company in the country. The insurer reported total assets of Rs 18.5 trillion and shareholders' equity of Rs 5.4 billion at the end of June 2014.
LIC officials said that this was a business decision by Moody’s and that it does not reflect on their insurance business or have any consequence for their company.
