Adriatic Slovenica d.d.'s Fitch rating upgraded from 'BBB-' to 'BBB+'

27 February 2019 —
Adriatic Slovenica's rating was upgraded following the completion of the acquisition process made by Generali Group over the Slovenian insurer. The decision comes after Adriatic Slovenica's Fitch rating was set to Rating Watch Positive (RWP) in May 2018.

"The upgrade reflects Fitch's standalone assessment of Adriatic Slovenica's credit profile following its separation from KD. Although Fitch assesses the company as strategically 'Important' to Generali, we do not incorporate any rating uplift to its standalone IFS (Insurer Financial Strength) due to its newness to the Generali group," wrote Fitch Ratings in a press release.

"Fitch ranks Adriatic Slovenica's business profile as favourable compared with other Slovenian insurance companies, reflecting favourable competitive positioning, moderate business risk profile and favourable diversification. This is offset somewhat by its operating scale, which we classify as less favourable relative to European insurers," added Fitch. The credit rating agency also believes that the affiliation of Adriatic Slovenica with Generali Group could lead to further upgrades of its financial ranking in the medium term.

Adriatic Slovenica will keep its new rating as long as its financial leverage is kept under 40%, the Fitch Prism Factor-Based Model remains classified as 'Strong,' and its fixed charge coverage ratio doesn't fall below 2x on a sustained basis.

You can read the whole report over Adriatic Slovenica's rating upgrade on Fitch Ratings' webstie.