In our opinion, Salama/Islamic Arab Insurance Co. (P.S.C.'s) (Salama's) capital and earnings has significantly deteriorated following a major loss in 2015 and due to forecasted losses in 2016 coming primarily from its United Arab Emirates motor portfolio and Best Re subsidiary. As a result of Salama's increased proportion of investment in high risk assets, relative to a weakened capital position, our risk position assessment has also worsened to high risk from moderate risk. Because Salama's investment mix changed drastically during 2015-2016, its weighted average asset quality has fallen to the 'BB' range leading to our assessment of its financial risk profile as less than adequate. We are therefore downgrading Salama to 'BBB-' from 'BBB+'. The negative outlook reflects our expectation
