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S&P revises AIG Seguros Mexico's outlook to stable

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S&P revises AIG Seguros Mexico's outlook to stable

S&P Global Ratings revised the outlook on AIG Seguros Mexico SA de CV's global scale rating to stable from negative, reflecting the company's adequate competitive position in Mexico.

The outlook revision also mirrors S&P's belief that the insurer will be able to withstand a sovereign stress scenario in the next two years through its high levels of capitalization and liquidity.

S&P believes the stability of the insurer's ratings is mainly due to its financial strength brought about by an excellent level of capitalization, its exposure to relatively low risk, and the lack of financial obligations.

The rating agency also believes that AIG Seguros's parent American International Group Inc., will provide extraordinary support to the Mexico-based insurer under financial stress.

S&P Global Ratings said it will lower the ratings if the insurance company is no longer capable of resisting a sovereign stress scenario, which the rating agency believes would happen if the company switches its investment strategy to improve direct exposure to the sovereign-backed debt.

Moreover, the global and national scale financial strength ratings of the company were also affirmed at A- and "mxAAA," respectively.

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.