Standard & Poor's (S&P) has affirmed the AA- long-term counterparty credit, insurer financial strength, and insurer financial enhancement ratings for Allianz Risk Transfer (ART).
At the same time, the company affirmed the A-1+ short-term counterparty credit rating on ART.
In addition, the insurer financial strength ratings for ART's two guaranteed subsidiaries, Allianz Risk Transfer Bermuda, and Allianz Risk Transfer NV were affirmed at AA-.
All the ratings were removed from CreditWatch, where they were placed on 10 May 2004, but the outlook for all the ratings was negative, said S&P.
“The ratings reflect ART's strong operating performance, extremely strong capitalisation, very strong liquidity, and strong management team,” said S&P credit analyst Paul Oates.
It said the ratings were underpinned by ART's increasing strategic role within the Allianz group, evidenced by a growing number of core-like characteristics and the provision of a net-worth maintenance agreement to ART from Allianz AG.
ART's strong competitive position was enhanced by the ratings on the company being in the 'AA' range, said S&P, but it added that ratings in a lower range would limit the company's ability to compete for credit enhancement business.
The ratings were placed on CreditWatch because of S&P's concerns that the parental net-worth maintenance agreement would not meet its requirements.
“Standard & Poor's is now satisfied that the enhanced agreement and ART's stand-alone characteristics, taken together, merit an affirmation of the ratings,” said Oates.
The negative outlook reflects the negative outlook on the Allianz group as a whole, it concluded.
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