Insurance Company Tsesna-Garant JSC's competitive position is less than adequate reflecting the company's market position as a midsize insurance company in Kazakhstan and small premium base in absolute terms compared to international peers. We view industry and country risk as moderate because of the company's sole business focus on Kazakhstan. The financial risk profile is supported by extremely strong capital adequacy supported in past by a number of capital injections from shareholders. The company is exposed to credit risks stemming from investments in fixed-income Kazakh instruments, whose average credit quality is in our 'BB' category. These risks, combined with concentrations in the investment portfolio on the Kazakh banking sector, makes us view the company's risk position as high. Tsesna-Garant has
