S&P revises Generali rating to A from A+; outlook stable
27 January 2012 - 20:42
S&P revises Generali rating to A from A+, due to market conditions.
Outlook stable, thanks to strong business fundamentals
Trieste – The rating agency Standard & Poor’s revised Generali’s rating to A from A+. The outlook is stable and reflects Generali’s “strong business fundamentals”.
According to Standard& Poor’s “the group still boasts a very strong earnings generation potential based on solid business fundamentals”. The agency “continues to see Generali's liquidity as ‘very strong’ on the back of large and positive net inflows from a widely diversified base of assets and operations”.
“The ratings on Generali – explains S&P - continue to reflect its "very strong" competitive position and operating performance as well as its "strong" enterprise risk management”.
The rating revision reflects the negative impact on Generali’s capital adequacy, with respect to S&P’s model, of low interest rates, increased credit spreads, and volatile equity markets.
The agency also underlines that Generali’s rating exceeds Italy’s by two notches.
The original release by S&P is available in the 'Download Area' below.