AM Best has downgraded the financial strength rating of Alea to B++ (very good) from A- (excellent) and the issuer credit rating to “bbb” from “a-” and has assigned a negative outlook to the group.
The ratings agency is the second one now to downgrade Alea's financial strength rating.
Alea said in a statement: "In light of the recent rating agency actions, the Group will not proceed with its previously announced plan to raise additional capital. The group noted that the board of directors is continuing to explore strategic alternatives including the sale of the group. In addition, the group indicated that there can be no assurance that this process will result in any transaction or a transaction at or above the current market price."
