TEXT-S&P lowers Munich Re of Africa, Munich Mauritius to A-; otlk neg

Our approach reflects the exposure of Munich Africa's business and investment portfolios and deposits to South Africa and the influence of general country risk factors on the company's business franchise and financial profiles.

The ratings on composite reinsurer Munich Mauritius reflect its group status as "core" to Munich Africa. It receives extensive reinsurance support from both the ultimate parent Munich Reinsurance Co. (AA-/Stable/--) and Munich Africa.

Outlook

The negative outlook on Munich Africa and Munich Mauritius reflects that on South Africa. If we were to lower the sovereign credit rating on South Africa, we would also lower the ratings on Munich Africa and Munich Mauritius in line with those on the sovereign.

Based on current information, we consider an upgrade to be unlikely.

Related Criteria And Research

All articles listed below are available on RatingsDirect on the Global Credit Portal.

-- Principles Of Credit Ratings, Feb. 16, 2011

-- Use Of CreditWatch And Outlooks, Sept. 14, 2009

-- Group Methodology, April 22, 2009

-- Interactive Ratings Methodology, April 22, 2009

-- Counterparty Credit Ratings And The Credit Framework, April 14, 2004

-- Criteria Update: Factoring Country Risk Into Insurer Financial Strength Ratings, Feb. 11, 2003

Ratings List

Downgraded

To From

Munich Reinsurance Co. of Africa Ltd.

Munich Mauritius Reinsurance Co. Ltd.

Counterparty Credit Rating

Local Currency A-/Negative/-- A/Negative/--

Financial Strength Rating

Local Currency A-/Negative/-- A/Negative/--