Dominant competitive position in Turkey Good capitalization, with extremely strong capital adequacy Marginal quality of investments Concentration in the Turkish market, which exacerbates earthquake-exposure modeling risk The national scale rating on Turkey-based reinsurer Milli Reasurans T.A.S. (Milli Re) reflects the company's marginal quality of investments (from a global perspective) and concentration in the Turkish market, which exacerbates the potential impact of earthquake-exposure modeling risk. These negative factors are partially mitigated, however, by Milli Re's dominant competitive position in Turkey and good capitalization. Quality of investments is the main constraining factor for the rating. Milli Re invests in instruments and deposits with some of the best credit quality available in the Republic of Turkey (foreign currency BB-/Stable/B, local currency BB/Stable/B, Turkey
