09 September 2010
The first-half 2010 results for Kuwait-based First Takaful Insurance Co. have affirmed our concerns about the company's future profitability.

Our 'BBB-' ratings on First Takaful remain on CreditWatch with negative implications, where they were placed on May 12, 2010.

We expect to resolve the CreditWatch listing within the next 30 days.

FRANKFURT (Standard & poor's): Standard & poor's Ratings Services said today that its 'BBB-' counterparty credit and insurer financial strength ratings on Kuwait-based First Takaful Insurance Co. (First Takaful) remain on CreditWatch with negative implications, where they were placed on May 12, 2010.

"The rating action mainly reflects our continued view of the deteriorating underwriting performance of First Takaful's "takaful fund", poor investment results for both members and shareholders, and diminished business growth under very difficult economic and competitive conditions," said Standard & poor's credit analyst Wolfgang Rief. "It also reflects our uncertainties about management's expectations and measures to restore profitability and return to growth."

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About Standard & poor's in the GCC
Standard & poor's is the leading provider of financial market intelligence to customers in the Gulf's credit risk management, wealth management, and data and information markets. Since entering the region in the late 1980's, Standard & poor's currently has public ratings on more than 100 issuers. In equity markets, Shariah-compliant versions of Standard & poor's global and regional equity market indices - S&p 500, S&p Europe 350, S&p Japan 500 and S&p/IFCI GCC - have created new opportunities for Islamic investors to benchmark their international investments and for asset managers to create new investment products serving the Islamic community. Standard & poor's Fund Services launched a qualitative fund management rating service for regional asset managers in 2007 assigning 17 Fund Management Ratings. For further details on Standard & poor's regional capabilities please visit www.gcc.standardandpoors.com

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