Ratings Services Standard & Poor's downgraded long-term credit rating of counterparty and financial strength of the Belarusian National Reinsurance Organization ("Belarus Fe") from "BB-" to "B+". Outlook is quite "Negative." This is due to lowering of the sovereign ratings of Belarus, said S&P credit analyst Catherine Tolstova.
Now the ratings of «Belarus Re» reflect the company’s own creditworthiness, as a stage, stipulated by the state’s support, was excluded from the rankings due to fact that a long-term rating of Belarus on its local currency was lower than «BB.»
However, experts continue to assign an important role to «Belarus Re»in the Belarusian economy, because the company is the sole provider of reinsurance protection for the Belarusian market and has very strong links with the Belarusian government.
«Negative» outlook is due to the forecast on ratings of the country as «national insurance company generally can’t be rated above the sovereign credit rating on liabilities in national currency of the country, where they are based,» reports S&P.
In the future, in case of further lowering of the sovereign credit rating of Belarus on liabilities in national currency, experts can lower and ratings of «Belarus Re.» However, Standard & Poor’s analysts will review «Belarus Re» outlook together with the revision of the forecast on sovereign ratings to «Stable.»