On Oct. 27, 2017, we raised our unsolicited long-term sovereign credit ratings on the Republic of Italy to 'BBB' from 'BBB-'. We regard Italy-based Allianz SpA as core to Germany-based Allianz SE (core operating entities rated AA/Stable). Given the company's high exposure to Italian sovereign risk, our long-term ratings on Italy-based Allianz SpA are capped at three notches above our sovereign credit rating on Italy. We are consequently raising our ratings on Allianz SpA to 'A' from 'A-'. The outlook is stable, mirroring that on the Republic of Italy. On Oct. 31, 2017, S&P Global Ratings raised its long-term counterparty credit and insurer financial strength ratings on Italy-based insurer Allianz SpA to 'A' from 'A-'. The outlook is stable. The
