OREANDA-NEWS. Fitch Ratings has revised Anadolu Anonim Turk Sigorta Sirketi's (Anadolu Sigorta) Outlook to Negative from Stable, while affirming the Insurer Financial Strength (IFS) Rating at 'BBB-'. Fitch has also affirmed the National IFS Rating at 'AA+(tur)' with a Stable Outlook.


The Outlook revision on the IFS Rating follows that on Turkey's sovereign rating on 19 August 2016 (see Fitch Affirms Turkey at 'BBB-'; Revises Outlook to Negative on www. fitchratings. com).

Fitch believes that Anadolu Sigorta's ratings are closely linked to Turkey's creditworthiness, primarily through its investments in domestic Turkish banks deposits and government bonds. Being the second-largest domestic non-life insurer, most of Anadolu Sigorta's earnings are sourced from Turkey, which leaves it vulnerable to potential economic downturns.


A downgrade of Anadolu Sigorta's international rating could be triggered by a sovereign downgrade. The ratings could also be downgraded if the insurer's capital position deteriorates, as measured by a regulatory solvency ratio below 100% or a Fitch Prism FBM score of 'somewhat weak' following substantial underwriting or investment losses.

Anadolu Sigorta's international IFS rating Outlook could be revised to Stable if the Outlook on the Turkish sovereign rating is revised to Stable.