Moody's lowers Confie Seguros

Moody's Investors Service said it downgraded the corporate family rating of Confie Seguros Holding II Co. to Caa1 from B3 and probability of default rating to Caa1-PD from B3-PD.

The downgrades were based on the company's decline in earnings over the past year, along with its recent announcement that it will delay publishing its 2016 audited financial statements and will restate certain figures for 2015, Moody's said.

The agency also said it downgraded the company's first-lien credit facilities to B3 from B2 and its second-lien term loan to Caa3 from Caa2.

The outlook is stable.

The downgrades reflect Confie's weaker earnings over the past year, substantial debt burden and uncertainty regarding the financial statements, Moody's said.

The company has experienced declining business volumes in portions of its retail, general agency and service operations during the past year, partly offset by cost saving initiatives, the agency said.

The weaker earnings have pushed the company's pro forma debt-to-EBITDA ratio at higher than 8x, which include standard accounting adjustments, Moody's added.

The agency said it believes Confie has taken steps to stabilize its revenues and EBITDA over the next few quarters.

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