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Fitch affirms Mexico's Fianzas Asecam

FitchRatings on April 8 affirmed the national scale rating of Mexican insurance and suretiescompany Fianzas Asecamat BBB(mex). The outlook for the rating is stable.

The ratingreflects the firm's inherent financial performance given that Fitch was not ableto determine the credit profile of the shareholders that could support the companyif it comes under pressure. In addition, external barriers may exist that wouldrestrict the movement of capital among the group's subsidiaries, Fitch noted.

FianzasAsecam's business is focused on offering administrative sureties and credit insuranceto large private and public sector companies in Mexico, especially state-owned oilfirm Pemex.

However,the high concentration of its business in large companies has caused its sales tofluctuate in the last five years, while its operating costs are above average forthe market and its claims rate shows high volatility.

Evenso, thanks to changes in its strategic plan the firm was able to improve its salesin 2015 and its commercial outlook for 2016 is stable, Fitch said, adding that itsinvestment portfolio is conservative and diversified with 64% of its investmentsin government instruments.