The national scale rating on Turkey-based reinsurer Milli Reasurans T.A.S. (Milli Re) reflects the company's leading competitive position in Turkey and its good capitalization. The ratings are constrained by the company's marginal quality of investments from a global perspective and concentration in the Turkish market, which exacerbate the potential impact of earthquake-exposure modeling risk. While we assess Milli Re's operating performance as marginal, it is not considered a weakness for the ratings. In Standard&Poor's Ratings Services' opinion, quality of investments is the main constraining factor for the rating. Milli Re invests in instruments and deposits with some of the best credit quality available in the Republic of Turkey (foreign currency BB/Positive/B, local currency BB+/Positive/B, Turkey national scale rating
