S&P lifts SCOR Perestrakhovaniye view to stable

S&P said it revised the outlook on SCOR Perestrakhovaniye to stable from negative.

The agency also said it affirmed the company’s AA- financial strength rating.

This outlook revision follows a similar action on the outlook on the Russian Federation in September, S&P said.

The financial strength rating on SCOR Perestrakhovaniye benefits from a qualifying guarantee from its ultimate parent, SCOR SE, the agency said.

The ratings on guaranteed entities may be up to four notches higher the local-currency rating on the country in which they are domiciled if the sovereign rating on that country is below investment grade, S&P said. The ratings can be six notches higher if the sovereign rating is investment grade, the agency added.

As the outlook on the Russian Federation was negative up until recently, SCOR Perestrakhovaniye was at risk of a downgrade if the rating on the sovereign was lowered, S&P said.

But since the outlook on the sovereign ratings of Russia was revised to stable, the agency said it believes the risk of a downgrade for SCOR Perestrakhovaniye is mitigated, leading to the stable outlook.

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