S&P has placed the ratings of Czech insurer Ceska Pojistovna on CreditWatch with negative implications, following a decision by its parent to call for an interim dividend of CKr3.5bn (£63.9m).
Ratings agency Standard & Poor's has placed the ratings of Czech insurer Ceska Pojistovna on CreditWatch with negative implications, following a decision by its parent to call for an interim dividend of CKr3.5bn (£63.9m).
The agency said Ceska Pojistovna's capital adequacy for 2001 would now be lower than previously expected.
It added that the impact of future dividend payments on the company's level of capitalisation was unclear but it intended resolve the CreditWatch placement within weeks, following discussions with the company.
Ceska Pojistovna's parent, the PPF group, recently gained full control of the company after the Czech government sold its minority interest.
Ceska Pojistovna's long-term counterparty credit and insurer financial strength ratings are BB-plus. Its senior unsecured debt carries a BB-minus rating.
