Rating agency Standard & Poor's (S&P) has lowered the counterparty credit and insurer financial strength ratings on Germany-based reinsurer Gerling-Konzern Globale Ruckversicherungs (GKG) and related entities to A- from A+.
It lowered the long-term debt rating on $194m (£130m)of subordinated debt issued by Gerling Global Finance Alpha BV and subguaranteed by GKG to BBB from A-.
S&P also lowered the counterparty credit and insurer financial strength ratings on Gerling-Konzern Allgemeine Versicherungs-AG and Gerling-Konzern Lebensversicherungs-AG to A from A+.
Finally S&P affirmed the A+ long-term counterparty credit and insurer financial strength ratings on the core entities of Gerling NCM credit insurance group as well as its short-term A1 counterparty credit ratings on Gerling-Konzern Speziale Kreditversicherungs and Gerling Namur Assurances du Credit SA.
The agency said the outlook on all entities is developing "reflecting the lack of clarity at this stage regarding the financial strength of the future owner at the holding company level and of the potential strategic partner of GKG".
