Milli Re's capital adequacy, which is at the 'AA' level as measured using S&P Global Ratings' risk-based model, supports our 'trAA' Turkey national scale rating on the company. Milli Re is also the only national reinsurer in Turkey, and its experienced management team has maintained the company's market position for a long time. Offsetting these factors, the reinsurer's exposure to the country's banking system through its bank deposits limits our view of its financial profile. Milli Re also faces foreign exchange risks, given the continued devaluation of the Turkish lira. In addition, though now in runoff, bodily injury claims arising from legacy MTPL business continue to affect Milli Re's operating performance. We could lower or raise our Turkey national scale
