...High Holding Company Leverage: KD Group, financna druzba, d.d.'s (KD Group) high financial leverage of 51% is a key negative rating driver. However, Fitch Ratings views positively the group's reduction in leverage since 2008 and its plans to continue deleveraging. Small Size, Strong Market Position: Fitch views KD Group as having a "small position and size/scale", based on global benchmarks, with total assets of EUR820m and shareholders' funds of EUR109m at end-2013. However, the group has a strong position in its main market, Slovenia. Adriatic Slovenica Zavarovalna druzba d.d. (Adriatic Slovenica), the main operating entity, is the second-largest insurer in Slovenia, and the asset management operations have a market share of 21% in the Slovenian mutual fund market. Fitch views this as a rating positive. Adequate Capitalisation: Fitch views KD Group's capitalisation as `adequate' on a consolidated risk-adjusted basis according to our Prism factor-based capital model (Prism FBM), although...
