LONDON--(BUSINESS WIRE)--A.M. Best Europe – Rating Services Limited has placed under review with negative implications the financial strength rating of A++ (Superior) and the issuer credit rating of “aa+” of Caisse Centrale de Reassurance (CCR) (France).
The rating action reflects the continued negative developments regarding the eurozone sovereign debt crisis, with the continued deterioration of the sovereign creditworthiness and the negative economic outlook for the region, which put pressure on the sovereign ratings of the Republic of France. CCR currently benefits from an explicit unlimited guarantee provided by the Republic of France to its state-backed business, which is factored in its ratings. A.M. Best will continue to monitor the economic environment and any potential impact on CCR’s ratings.
Upward rating pressures are unlikely at this point.
Negative rating actions could occur if the level of explicit support given to CCR by the French State or the creditworthiness of the Republic of France were to change.
While it appears robust at present, a severe worsening of the company’s risk-adjusted capitalisation or a significant deterioration of its operating performance, if they were to occur, could also trigger negative rating actions.
The principal methodology used in determining these ratings is Best’s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilised include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding Universal BCAR”; “Understanding BCAR for Property/Casualty Insurers”; “Natural Catastrophe Stress Test Methodology”; and “Assessing Country Risk ”. Methodologies can be found at www.ambest.com/ratings/methodology.
In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best Europe - Rating Services Limited Supplementary Disclosure.
A.M. Best Europe – Rating Services Limited is a subsidiary of A.M. Best Company. Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2011 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.