Best downgrades MAPFRE Re rating, citing eurozone exposure

MADRID—A.M. Best Co. Inc. has downgraded its rating of MAPFRE Re, the reinsurance arm of MAPFRE S.A., because of concerns over the company’s exposure to investments in several peripheral eurozone economies, particularly Spain and Portugal.

The rating agency said Wednesday that the downgrade to A from A+ also reflects MAPFRE S.A.’s exposure to commercial property in Spain through its investments.

Best said the rating actions it has taken concerning MAPRE Re and other European insurers and reinsurers reflect their exposure to the continued deterioration of the sovereign creditworthiness of several countries that use the euro as their currency.

“The rationale for taking credit action at this point is largely attributable to the current heightened level of credit and liquidity risk for insurers operating within the eurozone countries—most notably Italy and Spain,” Best said in a statement.