MINSK, 27 July (BelTA) - Fitch Ratings has affirmed Belgosstrakh Insurer Financial Strength (IFS) rating at 'B-' with the Stable Outlook, BelTA informs.
The rating and Outlook mirror Belarus' 'B-'/Stable Local Currency Long-Term Issuer Default Rating (IDR) and reflect Belgosstrakh's 100% state ownership. The rating also takes into account the presence of guarantees for insurance liabilities under compulsory lines, Belgosstrakh's leading position on the market in a number of fields, its sustainable generation of profit.
Fitch Ratings informs that Belarus redenominated its currency on a scale of 10,000:1 on 1 July 2016. It does not have any implications for the rating of Belgosstrakh.
Belgosstrakh is the leader of the market as an exclusive provider of a number of compulsory lines, including state-guaranteed employers' liability, homeowners' property, agricultural insurance, and a number of minor lines of insurance. “The Belarusian state has established strong support for Belgosstrakh in its legal framework, including direct guarantees on policyholder obligations and significant capital injections in previous years,” the press release of the agency reads.
Fitch Ratings Inc., an American Corporation, makes part of the big three international rating agencies, along with Standard & Poor's and Moody's.
