...High Holding Company Leverage: KD Group, financna druzba, d.d.'s high financial leverage of 42% at end-1H15 (end-2014: 47%) 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 EUR795m and total equity of EUR126m at end-2014. 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 rank number three with a market share of 22% in the Slovenian mutual fund market. Fitch views this as ratings positive. Adequate Capitalisation: Fitch views KD Group's capitalisation as `adequate' on a consolidated risk-adjusted basis according to our Prism factor-based capital...
