...High Holding Company Leverage: KD Group, financna druzba, d.d.'s (KD Group) high financial leverage of 40% at end-2015 (end-2014: 47%) is a key negative rating driver. Financial leverage has since increased to 46% on a pro-forma basis following the issuance of EUR50m of subordinated notes in May 2016 by Adriatic Slovenica Zavarovalna druzba d.d. (Adriatic Slovenica), the group's main operating entity. Fitch Ratings views positively the group's reduction in leverage since 2008 and its plans to reduce leverage in the medium term. Small Size, Strong Market Position: Fitch views KD Group as having a `small position and size/scale', based on global benchmarks, with total assets (excluding reinsurance assets) of EUR752m and total equity of EUR121m at end-2015. However, the group has a strong position in its main market Slovenia. Adriatic Slovenica is the second-largest insurer in Slovenia, and the asset management operations rank third with a market share of 22% in the Slovenian mutual fund market....
