S&P affirms the Generali rating at A- following global criteria change
25 March 2014 - 20:16
- Generali passes S&P stress test with positive solvency in highly distressed scenario
Trieste – Standard & Poor’s, the rating agency, has today affirmed Generali’s rating at A-, following the resolution of a CreditWatch as a result of its global criteria change introduced last year. The outlook is Negative.
S&P implemented a global criteria change that had the effect of an automatic downgrade if a financial entity was unable to pass an onerous stress test, based on an aggregate of severe historical financial crisis in Mexico, Thailand, Russia and Greece. Generali has passed S&P’s extreme stress test clearly demonstrating its ability to maintain a positive solvency in a highly distressed scenario.
The Generali Group CEO, Mario Greco, said: “This is a substantial achievement for Generali and the clearest possible signal of the inherent strength of the Group. Our ability to pass such a dramatic stress scenario is a testament to the significant balance sheet buffers and financial flexibility the Group has today. Moreover, we have always considered extremely unlikely the scenario of a potential default of Italy. S&P’s affirmation is an important and independent acknowledgement of the global diversification of the Group where approximately 70% of our business and assets are outside the domestic market. But it is also a positive signal of Italy’s attractiveness as an investment destination. In conclusion, it is a validation of the excellent progress Generali is making in its strategy of rebuilding solvency, reducing leverage, and improving profitability.”
As a result of this affirmation Generali maintains insurance financial strength ratings in the A-range from S&P and other rating agencies including A.M. Best.
Please find below the original release by S&P.