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Ratings On Russian Insurers Withdrawn

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Ratings On Russian Insurers Withdrawn

LONDON (S&P Global Ratings) March 31, 2022--S&P Global Ratings today said that it has withdrawn its local currency ratings on Russian insurers (see Ratings List for full details). Before the withdrawal, the long-term local currency ratings on all (excluding SCOR Perestrakhovaniye) were 'CCC+' and remained on CreditWatch developing.

At the time of the withdrawal, our long-term local currency rating on SCOR Perestrakhovaniye was 'AA-' with a negative outlook, reflecting the qualifying guarantee from its ultimate parent.

The withdrawal of these ratings follows the EU's decision on March 15, 2022, to ban the provision of credit ratings to legal persons, entities, or bodies established in Russia and our ensuing announcement that we will withdraw all our outstanding ratings on relevant issuers before April 15, 2022, the deadline imposed by the EU (see "S&P Global Ratings To Withdraw Ratings On Russian Entities," March 21, 2022).

Our ratings on Russia-based insurers (excluding SCOR Perestrakhovaniye) at the time of the withdrawal reflect our expectation that these insurers are unlikely to default on obligations due over the next 12 months. This is despite our lowering of our foreign and local currency sovereign credit ratings on Russia to 'CC/C' from 'CCC-/C' on March 17, 2022. With regards to SCOR Perestrakhovaniye, we believe the entity will continue to benefit from its unlimited parental guarantee on insurance claims.

We note that the Central Bank of Russia issued a decree according to which Russian companies are prohibited from transferring risks to reinsurance companies from a list of "unfriendly" countries. We understand Russia-based insurers will need the approval of the Central Bank in order to make off-shore payments. We believe that the insurers are likely to meet their financial commitments over the near term, considering their financial resources, including domestic reinsurance backstop facilities as well as low financial leverage on balance sheets (see "Russian Insurers Downgraded On Severely Adverse Macroeconomic Climate," published March 7, 2022).

We already suspended our ratings on SOGAZ and Rosgosstrakh due to international blocking sanctions (see "Related Research"). These ratings are now also formally withdrawn, as a result of the announcement mentioned above.

Related Criteria

Related Research

Ratings List

To From
* * * * * * * * * * * * * * AlfaStrakhovanie PLC * * * * * * * * * * * * *
CreditWatch Update/Not Rated Action

AlfaStrakhovanie PLC

Financial Strength Rating NR CCC+/Watch Dev/--
* * * * * * * * * * * * * * Energogarant PJSIC * * * * * * * * * * * * * *
CreditWatch Update/Not Rated Action

Energogarant PJSIC

Issuer Credit Rating NR CCC+/Watch Dev/--
Financial Strength Rating NR CCC+/Watch Dev/--
* * * * * * * * * * * * Ingosstrakh Insurance Co. * * * * * * * * * * * *
CreditWatch Update/Not Rated Action

Ingosstrakh Insurance Co.

Issuer Credit Rating NR CCC+/Watch Dev/--
Financial Strength Rating NR CCC+/Watch Dev/--
* * * * * * * * * * * * Lexgarant Insurance Co. Ltd. * * * * * * * * * * *
CreditWatch Update/Not Rated Action

Lexgarant Insurance Co. Ltd.

Issuer Credit Rating NR CCC+/Watch Dev/--
Financial Strength Rating NR CCC+/Watch Dev/--
* * * * * * * * * * * * * * * * * SCOR SE * * * * * * * * * * * * * * * *
CreditWatch Update/Not Rated Action

SCOR Perestrakhovaniye

Financial Strength Rating NR AA-/Negative/--
* * * * * * * * * * * * * * * * * VSK Insurance JSC * * * * * * * * * * * * * * * *
CreditWatch Update/Not Rated Action

VSK Insurance JSC

Financial Strength Rating NR CCC+/Watch Dev/--
* * * * * * * * * * * * * * Stanpeak Ltd. LLC * * * * * * * * * * * * * *
CreditWatch Update/Not Rated Action

Reso-Garantia Insurance Co.

Issuer Credit Rating NR CCC+/Watch Dev/--
Financial Strength Rating NR CCC+/Watch Dev/--

Stanpeak Ltd. LLC

Issuer Credit Rating NR CCC+/Watch Dev/--
NR--Not rated

Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria. Please see Ratings Criteria at www.standardandpoors.com for further information. A description of each of S&P Global Ratings' rating categories is contained in "S&P Global Ratings Definitions" at https://www.standardandpoors.com/en_US/web/guest/article/-/view/sourceId/504352 Complete ratings information is available to subscribers of RatingsDirect at www.capitaliq.com. All ratings affected by this rating action can be found on S&P Global Ratings' public website at www.standardandpoors.com. Use the Ratings search box located in the left column. Alternatively, call one of the following S&P Global Ratings numbers: Client Support Europe (44) 20-7176-7176; London Press Office (44) 20-7176-3605; Paris (33) 1-4420-6708; Frankfurt (49) 69-33-999-225; or Stockholm (46) 8-440-5914

Additional Contact:Insurance Ratings EMEA;
Insurance_Mailbox_EMEA@spglobal.com

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