AM Best has assigned Ironshore a negative outlook, reflecting the credit profile and high debt leverage of its Chinese owner Fosun International, which has pushed forward with plans to list the US insurer.

“Rating factors that could lead to negative rating actions include the inability of Ironshore to make steady progress towards, and successfully execute, an initial public offering within a reasonable timeframe,” the ratings agency says.

AM Best says “a deterioration in Fosun’s credit profile, a decline in risk-adjusted capitalisation or a sustained deterioration in operating performance” could also prompt negative rating actions.

Hong Kong-listed Fosun plans to list Ironshore on the New York Stock Exchange or NASDAQ.

AM Best has affirmed Ironshore’s financial strength rating at A and removed its ratings from “under review with negative implications”.

“The affirmation of the ratings reflects AM Best’s view that Ironshore has strong standalone attributes as a specialty insurer, will continue to build a relevant franchise in the specialty sector and is capable of delivering strong operating results.”

Fosun acquired the remaining 80% of Ironshore for $US1.84 billion ($2.47 billion) last year after first purchasing a 20% stake for about $US463.8 million ($622.56 million) in 2014.