S&P might downgrade PZU

Standard & Poor's said it placed its A insurer financial strength ratings and counterparty credit ratings on Powszechny Zaklad Ubezpieczen SA (parent company of PZU group) and its core life insurance subsidiary Powszechny Zaklad Ubezpieczen na Zycie SA on CreditWatch with negative implications.

The CreditWatch placements reflect the agency’s uncertainty about PZU group's ability to pass the hypothetical sovereign default stress test following the recent resignation of its CEO at the request of the main shareholder, the Polish treasury.

S&P also factors in uncertainty it sees surrounding the group's strategy in playing an active role in consolidation of the Polish banking sector.

The supervisory board has appointed as acting CEO of PZU group a management board member of Powszechny Zaklad Ubezpieczen and Powszechny Zaklad Ubezpieczen na Zycie who, until Sept. 29, was chief executive officer of Powszechny Zaklad Ubezpieczen na Zycie.

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