S&P Global Ratings on Aug. 26 downgraded its global scale issuer credit and financial strength ratings on Allianz México SA Cia. de Seguros to BBB+ from A-, maintaining a negative outlook.
The action follows a review of the Mexican insurer under the rating agency's revised criteria. S&P now considers Mexico's foreign currency sovereign rating as the credit constraint for strategically important subsidiaries.
At the same time, S&P affirmed its mxAAA national scale ratings on Allianz México, saying that the company has solid capitalization levels and an adequate competitive position with profitability in line with those of domestic peers.
The outlook on the national scale ratings remains stable.
Allianz México's importance for the Allianz group's diversification strategy, coupled with the high integration of operations and management with the latter, supports the rating agency's assessment of Allianz México as a strategically important unit, it said.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.
