Germany-based global multiline insurer Allianz SE's capital adequacy has recovered over 2012 to a "very strong" level commensurate with an 'AA' rating. In our view, the recovery of capitalization provides sizable financial buffers to help Allianz SE weather ongoing challenging economic and financial market conditions. We are therefore revising our outlook to stable from negative on the ratings on Allianz SE, its related core subsidiaries, and several strategically important subsidiaries. We are also affirming the 'AA' long-term and 'A-1+' short-term ratings on Allianz SE and its related core subsidiaries, and the 'AA-' long-term ratings on several strategically important subsidiaries. We continue to regard the challenging economic conditions in Italy and low interest rates--particularly in the home market Germany--as key risks
