TEXT-S&P revises reinsurer RISICOM outlook to stable, affirms 'A+'

Fri Nov 16, 2012 5:28am EST

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(The following statement was released by the rating agency)

Nov 16 -

Overview

-- On Nov. 14, we revised our outlook on Germany-based Siemens AG to stable from positive and affirmed the 'A+/A-1+' ratings.

-- RISICOM Rueckversicherung AG qualifies as a captive insurer of its parent Siemens under our criteria.

-- We are therefore revising our outlook on RISICOM to stable from positive and affirming our 'A+' ratings.

-- These rating actions are not due to any changes to the stand-alone characteristics of RISICOM.

-- The stable outlook on RISICOM reflects that on Siemens.

Rating Action

On Nov. 16, 2012, Standard & Poor's Ratings Services revised its outlook on Germany-based captive reinsurer RISICOM Rueckversicherung AG to stable from positive. At the same time, we affirmed the 'A+' long-term counterparty credit and insurer financial strength ratings on RISICOM.

Rationale

The rating actions mirror those on RISICOM's parent, Siemens AG (Siemens; A+/Stable/A-1+), on Nov. 14, 2012 (see "Siemens Outlook Revised To Stable From Positive On Moderating Operating Performance And Financial Policy Changes").

RISICOM qualifies as a captive insurer under our rating criteria; therefore we rate it at the same level as its parent. The ratings on RISICOM will therefore move in lock step with those on Siemens.

The rating action and outlook revision on RISICOM are not due to any changes to the company's stand-alone credit profile.

Outlook

The stable outlook on RISICOM reflects that on its parent, Siemens.

Related Criteria And Research

-- Siemens Outlook Revised To Stable From Positive On Moderating Operating Performance And Financial Policy Changes, Nov. 14, 2012

-- Interactive Ratings Methodology, April 22, 2009

-- Rating Captive Insurers, April 13, 2004

-- Corporate Criteria--Parent/Subsidiary Links, Oct. 28, 2004

Ratings List

Ratings Affirmed; CreditWatch/Outlook Action

To From

RISICOM Rueckversicherung AG

Counterparty Credit Rating A+/Stable/-- A+/Positive/--

Financial Strength Rating A+/Stable/-- A+/Positive/--

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