Fitch Ratings on March 26 upgraded Sul América SA's long-term local and foreign currency issuer default ratings to BB- from B+ and long-term national rating to AA-(bra) from A+(bra).
The ratings outlooks are stable.
The upgrade of Sul América's issuer default ratings comes after Fitch revised its global master insurance criteria and subsequently placed the insurer's ratings in "Under Criteria Observation."
Meanwhile, the upgrade of the insurer's long-term national rating follows the upgrade of its long-term local currency issuer default rating and reflects the improvement in Fitch's assessment of the insurer's standing among Brazilian issuers.
Sul América's ratings reflect its favorable business profile compared to other Brazilian insurers, very strong financial performance and earnings and adequate capitalization. These positive factors, however, are partially offset by the insurer's significant exposure to Brazilian government securities and other noninvestment grade securities as well as risks associated with operating in the Brazilian insurance market.
Fitch affirmed the insurer's B short-term foreign and local currency issuer default ratings and F1+(bra) short-term national rating.