Best’s News & Research Service - March 25, 2022 04:36 PM (EDT)
AM Best Maintains Under Review With Negative Implications Status and Withdraws Credit Ratings of Russian Reinsurance Company JSC
- March 25, 2022 04:36 PM (EDT)
London //BestWire// - AM Best has maintained the under review with negative implications status for the Financial Strength Rating of B- (Fair) and the Long-Term Issuer Credit Rating of “bb-” (Fair) of Russian Reinsurance Company JSC (Russian Re) (Russia). Concurrently, AM Best has withdrawn these Credit Ratings (ratings) for commercial reasons that include, but are not limited to, the sanctions recently imposed by the European Union that will ban the provision of ratings to legal persons, entities or bodies established in Russia.
The maintaining of the under review with negative implications status takes into consideration Russian Re’s exposure to heightened geopolitical, economic and financial system risks in Russia. AM Best also notes the potential impact of inflation on the adequacy of reserves, liquidity constraints and the disruption to Russian Re’s long-standing relationships with foreign retrocessionaires stemming from sanctions imposed on Russia and recent Russian legislation.
The ratings also are under review with negative implications due to the potential for further deterioration in economic and financial system conditions in Russia and for this to have an adverse impact on the credit profile of Russian Re.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.