AM Best downgrades Milli Re's rating

AM Best has downgraded the long-term financial strength and credit ratings of Milli Reasurans (Milli Re).

The first rating was lowered from "B-" (fair) to "C" (weak), while the second was changed from "bb-" (fair) to "ccc" (weak). The outlook for both ratings is negative.

AM Best based its decision on the pressure on the Turkish reinsurer's balance sheet following the deterioration of the risk-adjusted capitalization. The rating also reflects marginal enterprise risk management (ERM).

The negative outlook is due to the company's high exposure to macroeconomic risks in Turkey.