Moody's on Dec. 12 upgraded the national-scale insurance financial strength ratings of La Boliviana Ciacruz de Seguros y Reaseguros SA and La Boliviana Ciacruz Seguros Personales to Aaa.bo from Aa1.bo.

The rating agency also affirmed the companies' Ba3 global local currency insurance financial strength while maintaining the ratings outlooks at stable.

The upgrade is based on the companies' continuously improving business and financial profiles, especially in their profitability and market position, Moody's said.

The ratings affirmation "reflects the companies' established presence in the Bolivian property and casualty (P&C) and life insurance sectors, as well as their overall favorable profitability, solid capitalization and well-diversified distribution channels," Moody's added.

"Offsetting these positive factors are the companies' significant investment risk, given their concentration in Bolivian government bonds (Ba3 stable) and domestic bank deposits, and Bolivia's limited insurance market development, as reflected in the low penetration of insurance products in Bolivia's economy," the rating agency added.

The companies' credit profiles are constrained mainly by the country's "high sovereign risk and poor operating environment," Moody's said.