Fitch downgrades Ace Russia's insurer financial strength rating

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.