Fitch Ratings has downgraded Moscow-based Ace Insurance Co. CJSC's insurer financial strength rating to “BBB” from “BBB+” with a negative outlook, London-based Fitch Ratings Ltd. said Monday.
Fitch said that the downgrade of Ace Russia's financial strength rating followed the downgrade of the Russian Federation's country ceiling to “BBB” from “BBB+”.
“This in turn reflects Fitch's view that, although the Russian authorities continue to maintain an open capital account, sanctions from and deteriorating relations with the EU and U.S. pose risks to Russia's financial integration with the rest of the world, increasing transfer and convertibility risk,” said Fitch in a statement
Ace Russia is part of Zurich-based ACE Group, with Ace Ltd. as its ultimate parent.
Russia's central bank has said the premiums volume posted by the country's insurers increased 8.9% year on year to 262.99 billion Russian rubles ($7.5 billion) during the first quarter of 2014, reported Forinsurer citing Interfax.