S&P Says Allianz SE Ratings ‘Not Affected’ by Dresdner Separation

March 19, 2008

Standard & Poor’s Ratings Services said that its ratings and outlook on Germany’s Allianz SE (AZSE) [currently ‘AA’/Stable/’A-1+’] and related entities “are not affected by the group’s plans to separate the wholesale and retail-banking businesses of its Germany-based banking subsidiary Dresdner Bank AG into two distinct legal entities” (See IJ web site – https://www.insurancejournal.com/news/international/2008/03/14/88241.htm).

S&P currently rates the bank ‘A’ with a negative outlook – Debt at ‘A-1’. The rating agency explained that this “move aims to provide AZSE with greater flexibility to explore strategic alternatives in case of further consolidation in the banking market.

“We will closely monitor implementation of the group’s restructuring plans, which involve operational risks in the currently fragile market environment. These include execution risk in implementing the new legal structure and the risk of losing key personnel and clients due to uncertainties about Dresdner’s future.

“Downward rating pressure could occur should AZSE fail to successfully manage these risks or should the group be unable to maintain very strong earnings and at least strong capitalization at the consolidated level.”

Source: Standard & Poor’s – www.standardandpoors.com

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