S&P: Suramericana group on negative watch

Standard & Poor’s said it placed the BBB issuer credit rating and financial strength rating on Suramericana Insurance Group’s core subsidiaries, Seguros de Vida Suramericana, Seguros Generales Suramericana and Seguros de Riesgos Laborales Suramericana, on CreditWatch with negative implications.

The negative watch placement follows news that Suramericana reached an agreement with RSA Group to acquire its operations in Latin America for £403 million, S&P said.

The transaction is subject to obtaining relevant regulatory approvals in each of the countries, including Argentina, Chile, Colombia, Brazil, Mexico and Uruguay, the agency said.

The transaction is expected to be completed within the next 18 months, S&P said.

Given the size of RSA’s operations in Latin America relative to Suramericana’s core operating subsidiaries, the agency said it will consider RSA’s operations in the new credit profile assessment.

Assuming sufficient information, S&P said it will resolve the CreditWatch listing after the deal is completed.

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