S&P Global Ratings on Dec. 12 lowered its issuer credit ratings and financial strength ratings on four Colombian insurance companies following a similar action on the foreign and local currency sovereign ratings of Colombia.
The rating agency downgraded Seguros De Vida Suramericana SA, Seguros Generales Suramericana SA and Seguros de Riesgos Laborales Suramericana SA to BBB- from BBB. Meanwhile, Cardif Colombia Seguros Generales SA's ratings went down to BBB from BBB+. The outlook on the entities is stable and reflects the outlook on Colombia.
The ratings on the Suramericana units and Cardif Colombia are based on S&P's views of their credit profile, the potential for external support from a parent with stronger credit quality and the constraint imposed by Colombia's sovereign ratings.
The Colombian economy continues to suffer from knock-on effects of lower commodity prices, reflected in high external debt and pronounced volatility in the country's terms of trade, and its weaker external position highlights less resilience to terms of trade and other external shocks, the rating agency said. It added that it still expected a gradual reduction in fiscal deficits and a marginal increase in debt in the coming three years.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.
