S&P Global Ratings on Sept. 27 revised its CreditWatch designationon Sagicor Life Inc.'sBB- counterparty credit and financial strength ratings to negative from developing.
The action reflects that the upside scenario for the companyis no longer possible given S&P's recent downgrade of its sovereign ratings on Barbados, where SagicorLife is based.
The negative CreditWatch implication on the company reflectsthe probability of downgrade to the level of sovereign's ratings if parent companySagicor Financial Corp.'snew corporate structure does not support its Barbados operation under a sovereigndefault scenario.
Sagicor Financial's current plans of separating most Caribbeanoperations under Sagicor Life and making them direct subsidiaries of the group willreduce the Barbadian unit's importance, which will result in S&P concludingits ratings on the company, the rating agency noted.
S&P Global Ratingsand S&P Global Market Intelligence are owned by S&P Global Inc.