S&P lowers Powszechny Zaklad Ubezpieczen

Standard & Poor's said it lowered the insurer financial strength and counterparty credit ratings on Powszechny Zaklad Ubezpieczen SA, and its rated core subsidiaries, to A- from A.

The ratings remain on CreditWatch with negative implications, where they were placed in December, S&P said.

The downgrade follows a similar downgrade of the long-term ratings on Poland, the agency said.

The ratings on an insurer are constrained by a view of country risk and the downgrade of Poland implies increased risk on the company’s investment portfolio, S&P said.

More than 90% of the company’s investments and policyholder liabilities are held by entities domiciled in Poland, the agency added.

The group’s assets comprise mostly government debt, given the relatively underdeveloped debt capital markets in Poland, S&P said.

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