ROSENERGO NIG’s Reliability Rating Affirmed At ‘BBB'
These strengths are partially offset by the reduction of ROSENERGO NIG’s authorized capital to e480 million from e1.88 billion, some structural deterioration in its insurance portfolio (with obligatory motor third-party liability accounting for 68% of total premiums written), as well as its investment portfolio’s inadequate quality, liquidity and yield. We view the sharp increase in the premiums written (up 78% on 2013) as a factor heightening the company’s operational risk.
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