Fitch Ratings placed the BBB-(mex) national scale rating of Principal Mexico Compania de Seguros SA de CV on Rating Watch Evolving, following the signing of a contract that allows asset manager Akaan Lombard International to buy all the shares of the Mexican insurer.

The agreement, which was announced in September 2018, still awaits regulatory approval.

The rating agency noted that, due to its sale, the company now has limited importance for its ultimate parent, Principal Financial Group Inc. However, Fitch's placement still considers the companies' shared brand and reputation as well as their integration.

Fitch said it will resolve and withdraw the rating placement once the authorization process for the sale has been completed.

In addition, Fitch affirmed and withdrew the BBB(mex) national scale ratings of Principal Pensiones SA De CV Principal Grupo Financiero. Prior to the withdrawal, the rating agency removed Principal Pensiones' rating from Watch Evolving and assigned a stable outlook.