On Nov. 20, 2013, Italy-based Societa Cattolica di Assicurazione (Cattolica) announced the acquisition of Fata Assicurazioni from Assicurazioni Generali SpA for €179 million. The acquisition is a good business and geographic fit, in our view, as it reinforces Cattolica's presence in motor insurance and in northern Italy. We expect the acquisition to have a slightly negative impact on Cattolica's capital adequacy, to be partially alleviated through an upcoming subordinated debt issue. We are consequently affirming our 'BBB' ratings on Cattolica. The negative outlook reflects that on Italy, as well as our views of the risks of further weakening of Cattolica's capital adequacy and risk position. On Nov. 28, 2013, Standard&Poor's Ratings Services affirmed its 'BBB' insurer financial strength
