S&P downgrades Rosgosstrakh

S&P said it lowered the long-term insurer financial strength and counterparty credit ratings on PJSC Rosgosstrakh to B+ from BB-.

The outlook is negative.

The agency also said it lowered the company’s Russia national scale rating to ruA from ruAA-.

The downgrades reflects an opinion that Rosgosstrakh's financial risk profile deteriorated to an extremely weak level due to capital erosion, S&P said.

Capital adequacy worsened significantly in 2015 due to high accumulated losses of RUB 10 billion, significant goodwill on the balance sheet of the company and increased investments in equities, the agency said.

Further material improvements in capital adequacy in 2016 are not expected, S&P added.

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