On Aug. 3, 2012, we lowered the long-term rating on the Republic of Slovenia to 'A' from 'A+', and maintained a negative outlook. We are removing the one notch of uplift that we were factoring into the ratings on Sava Re to reflect the still "moderately high" likelihood, although reduced ability, of the Slovenian government to provide extraordinary support in the event of financial distress. We are therefore lowering our long-term rating on Sava Re to 'BBB+' from 'A-'. The negative outlook reflects our view that Sava Re's business and financial risk profiles could potentially weaken if the operating, economic, and financial environments in Slovenia deteriorate further. On Aug. 7, 2012, Standard&Poor's Ratings Services lowered its long-term counterparty
