Fitch Ratings has affirmed Belarusian National Reinsurance Organization’s (Belarus Re) Insurer Financial Strength (IFS) Rating at ‘B’. The Outlook is Stable, as BeltA reported . The rating reflects the 100% state ownership of Belarus Re, its exclusive position in the local reinsurance sector underpinned by legislation and its strong capitalization. The rating also takes into account the weak quality and high concentration of the reinsurer’s investment portfolio. The Belarusian government has established strong support for Belarus Re in its legal framework, as part of its aim to develop a well-functioning reinsurance system. Fitch believes that the government could support Belarus Re on a priority basis over other state-owned companies, because of its small size and systemic importance to the financial sector. Belarus Re benefits from its exclusive market position. Regulations oblige local primary insurers to reinsure risks exceeding the permitted net retention of 20% of their equity. A change in Belarus’ Local-Currency Long-Term IDR is likely to lead to a corresponding change in the reinsurer’s IFS rating. A significant change in the reinsurer’s relationship with the government would also likely have a direct impact on Belarus Re’s ratings, Fitch Ratings believes.