S&P Upgrades Secura Ratings to ‘AA-‘; Guaranteed by KBC

April 18, 2007

Standard & Poor’s Ratings Services has raised its long-term counterparty credit and insurer financial strength ratings on Belgian reinsurer Secura N.V. to “AA-” from “A+” and assigned a stable outlook.

“The upgrade reflects the strengthening of the guarantee provided to Secura from parent company KBC Insurance N.V.,” explained S&P credit analyst Virginie Crepy.

S&P noted: “The guarantee relates to all current and future (re)insurance contracts issued by Secura and has very limited scope for termination.

“The stable outlook reflects that on parent and guarantor KBC Insurance. The most likely circumstance leading to upward pressure on the ratings would be an upgrade of the ratings on KBC Insurance, though the current outlook on the parent is stable. The most likely scenario for downward pressure on the ratings would be a change in ownership of Secura resulting in the cancellation of the existing guarantee in respect of obligations subsequently assumed.”

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