S&P Upgrades Arabian Scandinavian Insurance Company's Rating to 'A'

Established in 1978, Arabian Scandinavian Insurance Company (ASCANA) has been at the forefront of providing comprehensive specialized Takaful solutions in compliance with Sharia principles. With a market cap of 271,040,000, the company has demonstrated consistent growth and resilience in a competitive market. However, the recent S&P upgrade to 'A' marks a significant milestone in the company's journey. The upgrade is primarily due to an unconditional guarantee by ASCANA's parent company, Sukoon Insurance, which owns a substantial 93% stake in the company. This guarantee pertains to ASCANA's payment obligations, providing a significant safety net for the company's financial commitments. The 'A' rating signifies a stable outlook, which is similar to Sukoon's rating. S&P anticipates that ASCANA's rating will move in sync with Sukoon's as long as the guarantee is in effect. This essentially means that the financial strength of Sukoon will continue to have a direct impact on ASCANA's rating and outlook. The CEO of ASCANA expressed delight over the rating upgrade, attributing it to the financial strength of Sukoon and ASCANA's unwavering commitment to customer service. This development is likely to instill greater confidence among existing and potential investors, and could potentially boost the company's market performance. Despite the negative yields over the past 1 and 3 months, the rating upgrade and the backing of a financially strong parent company provide a positive outlook for ASCANA. The company's commitment to customer service and adherence to Sharia principles further strengthen its position in the Islamic insurance market.