Moody's assigns Münchener Rück do Brasil A3, Aaa.br

Moody's Investors Service said it has assigned A3 global local currency and Aaa.br national-scale insurance financial strength ratings to Münchener Rück do Brasil, a subsidiary of Munich Reinsurance Co.

Both ratings have stable outlooks.

According to Moody's, Münchener Rück do Brasil's ratings are based on the extensive support - both explicit and implicit - provided by its parent, Munich Re (rated Aa3 for insurance financial strength), not only through the sharing of the brand name, but also through considerable risk transfer arrangements.

These strengths, however, are mitigated by the above-average sovereign risk and operating environment in Brazil, the likely concentration of investments in Brazilian sovereign bonds (rated Ba1) and the uncertainty and challenges faced by the company in the reinsurance market in Brazil, which was just recently opened up to competition, the agency added.

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