S&P lowers ratings of SOGAZ, Transneft, Ingosstrakh and RESO-Guarantia
Standard & Poor's Ratings Services (S&P) has lowered the ratings of several Russian insurance companies because of the escalating economic crisis in the country.
The downgrade affected SOGAZ, Transneft, Ingosstrakh and RESO-Guarantia. The positions of Rosgosstrakh, Soglasie and VTB Insurance remained unchanged.
S&P also changed the assessment of the risk of the insurance industry and country risk (IICRA) for the Russian property insurance from moderate to high. Russia's GDP is expected to decline this year by 2.6%, and the average annual growth in 2015-2018 will remain at 0.5%, while in the past four years it was 2.4%.
The long-term counterparty credit ratings of SOGAZ, Transneft and Ingosstrakh dropped from 'BBB-' to 'BB +', and their ratings on a national scale - from 'ruAAA' to 'ruAA +'. RESO-Guarantia's ratings on the international scale were reduced from 'BB +' to 'BB', national - from 'ruAA + to 'ruAA'.
The outlook on the ratings of SOGAZ and Transneft was given 'stable', on the ratings of Ingosstrakh and RESO-Guarantia - 'negative', but S&P removed them from the CreditWatch 'negative' list.
S&P also left the long-term ratings of Rosgosstrakh at the level of 'BB-/ruA+' with a 'negative' outlook, Soglasie - 'BB-/ruAA-' with a 'stable' outlook and VTB Insurance - 'BB+/ruAA+' with a 'negative' outlook.