Author: Tracey Jones
Fitch Ratings has revised the outlook on two Belarusian state-owned insurers - Belarusian Republican Unitary Insurance Company (Belgosstrakh) and Export-Import Insurance Company of Belarus (Eximgarant) - 'B' Insurer Financial Strength (IFS) ratings to negative from stable.
Fitch has also affirmed Belgosstrakh's and Eximgarant's IFSs at 'B'.
The negative outlooks reflect Fitch's opinion that the Belarusian sovereign's financial position weakened significantly, and could deteriorate further in the near term, which would undermine the sovereign's ability to provide support to these two state-owned insurers.
The rating action also takes into account the potentially weakening credit quality of the insurance companies' banking assets, following the revision of the outlooks to negative from stable on seven Belarusian banks - Belagroprombank, Belarusbank, Belgazprombank, Belinvestbank, Belvnesheconombank, BPS-Bank, and VTB Bank CJSC 'B' long-term issuer default ratings.
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