S&P places Slovenia’s Triglav, Triglav Re ratings on watch negative

The CreditWatch placements follow our placement of the long- and short-term ratings on Slovenia on CreditWatch with negative implications, Standard&Poor's said in a statement.

“In accordance with our criteria for rating government-related entities (GREs), we consider Triglav Insurance and Triglav Re's roles to be 'important' for the Slovenian government and the link between them to be "very strong,” the statement said.

“As such, the ratings on both entities are based on Triglav Group's stand-alone credit profile, which we assess at 'bbb+', and to which we add one notch of uplift to reflect its GRE status, and the 'high' likelihood of extraordinary support from the Slovenian government.”

S&P said it could remove the ratings from CreditWatch and affirm them if the ratings on Slovenia are removed from CreditWatch and affirmed, or if Triglav Group's financial and business profiles prove more resilient to the deteriorating operating, macroeconomic, and financial environment in Slovenia than we currently assume in our base-case scenario.

The ratings agency expects to resolve or update the CreditWatch placement within 90 days, following its CreditWatch resolution or update on the sovereign rating.