S&P Puts Ceska pojistovna 'BBB' Rating on CreditWatch Positive

April 30, 2007

Standard & Poor's Ratings Services reacted to the announcement of the joint venture agreement between Ceska pojistovna a.s. (Ceska) and Italy's Generali Group (See IJ web site April 27) by placing the Czech insurer's "BBB" counterparty credit and insurer financial strength ratings on its CreditWatch with positive implications.

"Standard & Poor's considers that on the successful completion of Generali's acquisition of CZI Holdings, the ratings on Ceska will likely be raised by up to three notches," stated S&P credit analyst Paul Bradley.

S&P explained the move as indicative of the "support from a higher rated entity, Generali, and expected greater transparency at a stand-alone level resulting from Generali's control."