Fitch Ratings on Aug. 26 downgraded the insurer financial strength ratings of Argentine insurers Nación Seguros SA, Nación Reaseguros SA, and Nación Seguros de Retiro SA to CCC from B.
The rating action reflects Fitch's updated view of the operating environment of Argentine financial institutions on the heels of the rating agency's sovereign downgrade to CCC from B. Argentina's sovereign ratings were downgraded following President Mauricio Macri's defeat in primary elections held earlier in August.
Fitch considers the three insurance units as core subsidiaries of state-owned Banco de la Nación Argentina. The ratings of the three insurers depend on how Fitch views Banco Nación's ability and willingness to give them support.
