At the same time, S&P affirmed our 'B-' counterparty credit and insurance financial strength ratings on the company. S&P caps the ratings on Belarus Re at 'B-', in line with the long-term local currency sovereign rating on Belarus, to reflect its view of the company's high exposure to the sovereign.
"The stable outlook on Belarus Re mirrors the outlook on Belarus and reflects our view that further changes in the company's economic environment will likely be reflected in the company's financial risk profile, stemming from the quality of the investment portfolio. We could raise the ratings on Belarus Re if we were to raise the long-term local currency rating on Belarus. However, Belarus Re's GRE status is unlikely to result in any rating uplift for potential government support over the next 12 months, given the low sovereign rating," says the press release.
"We do not anticipate taking negative rating actions on Belarus Re, given the company's current business and financial risk profiles. However, a negative rating action on Belarus could trigger a similar rating action on Belarus Re," said Standard & Poor's.
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BELARUS: S&P revises outlook on Belarusian National Reinsurance Organization
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