The confirmation of the AA- rating decided by S&P is a double victory for Generali

Generali will remember such a brilliant weekend for quite some time. The Trieste board had just appreciated the progress of the negotiations with the Vtb bank for the imminent landing of Generali in Russia, when in Venice - where the general council of the group was meeting - the dreaded rating agency Standard & Poor's arrived most welcome news: the confirmation of both the outlook (stable) and the AA- rating. S&P's judgment is a double victory for the CEO Giovanni Perissinotto and for the entire staff of the winged Lion. This is because – in times of financial crisis, market panic and sovereign risk for the most undisciplined countries in the Eurozone – the confirmation of the rating is never taken for granted. But Generali's confirmation is worth double because its rating is two steps above that of Italy and is in stark contrast to the rain of rejection that in the last few days the rating agencies have reserved for many of the major banks (Intesa and Mediobanca in primis ) and the outlook of other insurance groups (Fonsai in the lead). The crucial point – as noted by the American agency – "is Generali's moderate exposure to risk": a judgment that rewards the foresight of the financial diversification policy with which Leo has always moved and which is exalted by the crisis. We consider Generali a global player and its rating will continue to reflect its strong competitive position and operational performance as well as its strong corporate risk management.