FitchRatings on July 7 assigned Russian insurer JSC IC Allianz an insurer financialstrength rating of BBB- with a negative outlook and a national issuer financialstrength rating of AAA (rus) with a stable outlook.

Fitchsaid the rating is based on 100% ownership of the Russian insurer by , which has a AAinsurer financial strength rating with a stable outlook, but also takes intoaccount Russia's sovereign long-term local currency issuer default rating ofBBB-, as well as the subsidiary's "weak" standalone capital positionand operating performance.

Thenegative outlook on Allianz Russia's BBB- rating reflects that of the Russiansovereign rating.

Therating agency said it perceives Allianz Russia as strategically important tothe parent, a view that is supported by the track record of parent support andits strategic commitment to maintaining a direct presence in Russia.