Fitch Ratings on March 27 downgraded Fianzas Asecam's national rating to BBB-(mex) from BBB(mex) and assigned a stable outlook.

The downgrade reflects the deterioration of the company's profitability, for the second year in a row, that has resulted in operating and net losses, Fitch said. Although the company has managed to reduce its loss ratio, operating costs put pressure on its performance until registering a combined indicator of 171% in 2017 from 122% in 2016.

Fianzas Asecam has also seen fluctuations in the issue of premiums in the last five years, derived from a high concentration in large businesses commonly observed in the Mexican bond sector.

On the other hand, Fianzas Asecam's capitalization and leverage indicators remain positive compared to the sector while its catastrophic reserves should strengthen its capital structure in addition to meeting regulatory compliance, Fitch said. The company also manages a conservative and diversified investment portfolio.