Fitch Ratings on July 8 downgraded , or SISA, andSISA VIDA SA Seguros de PersonasSeguros de Personas' international scale insurer financial strength ratings toBB- from BB, while removing them from rating watch negative.
Fitch also downgraded the two insurers' national scaleinsurance financial strength ratings AA(slv) from AAA(slv), removing thenegative rating watch. Fitch assigned a stable outlook to both companies.
The action follows the closing of the acquisition of SISAand SISA VIDA by Grupo Terra SAde CV, after receiving approvalfrom El Salvador's financial system regulator.
SISA's ratings reflect partial support from its newshareholder. They also reflect the company's strong market position andleadership in El Salvador's insurance sector, adequate technical profitability,appropriate levels of capitalization and ample liquidity ratios.
Meanwhile, potential support from Terra is based on thestrategic importance of SISA and SISA VIDA in El Salvador, based on integrationwith sibling bank Banco Cuscatlán. Fitch notes the two insurers may sharepotential synergies with Terra, but these will take time to develop.