On 30 January 2018, Fitch Ratings has upgraded Insurer Financial Strength (IFS) Rating of Export-Import Insurance Company of the Republic of Belarus (Eximgarant of Belarus) to 'B' from 'B-'. The Outlook is Stable.
KEY RATING DRIVERS
The upgrade of the IFS rating follows a similar action on Belarus's sovereign Long-Term Local Currency Issuer Default Rating (IDR) on 26 January 2018, which was upgraded to 'B' from 'B-'.
The rating continues to reflect the insurer’s 100% state ownership and capital support from the state when needed. In addition, the rating reflects the leading market positions of Eximgarant in its respective segments, sustainable profit generation and the fairly low quality of its investment portfolio.
The rating of Eximgarant also benefits from state guarantees for insurance liabilities under compulsory lines.
A change in Belarus's Local Currency Long-Term IDR is likely to lead to a corresponding change in the insurer IFS Rating.
A weakening in the insurer relationship with the government would likely have a direct impact on the insurer rating.