OVERVIEW In our opinion, uncertainties relating to potentially significant loss-of-handset reinsurance liabilities in South Korea have hurt the competitive position and earnings of Salama/IAIC and its wholly owned BEST RE reinsurance subgroup Nevertheless, capitalization across the Salama/IAIC group remains strong at AED1,263.4 million (US$344.3 million), and risk-based capital adequacy appears strong or better under realistic stress scenarios. Although these ongoing uncertainties might have damaged the group's competitive position and earnings potential in the short-term, if they remain strong, the group's performance could return to pre-2011 levels, which were satisfactory. The ratings therefore remain on CreditWatch. RATING ACTION LONDON (Standard&Poor's) May 6, 2013--Standard&Poor's Ratings Services said today that it is keeping its 'A-' counterparty credit and financial
