Ratings agency Standard & Poor's has reduced its long-term insurer financial strength ratings on German insurer Gerling to 'BBB'.
The update follows reports that Gerling might not receive regulatory approval for the sale of its reinsurance operations.
Standard & Poor suggested in a statement that the regulator has made no formal statement, and that a decision is to be expected in early March.
Standard & Poor's credit analyst Karin Clemens said: "Standard & Poor's expects Gerling management's ability to find a suitable buyer for its primary insurance operations to be significantly reduced as long as its reinsurance business forms part of the group.
"The group's ability to meet regulatory solvency requirements is also likely to be challenged under such a scenario, particularly because management has already made extensive use of its main sources of financial flexibility."
