S&P lowers Sagicor Life

Standard & Poor's said it lowered the counterparty credit and financial strength ratings on Sagicor Life Inc. to BB+ from BBB-.

The agency also said it lowered the rating on Sagicor Finance Ltd.'s $150 million 10-year senior unsecured notes to BB from BB+.

The outlook is negative.

The downgrade follows the downgrade of Jamaica to SD, or selective default.

Sagicor Life holds investments in Jamaican government securities, S&P said. The sovereign downgrade weakens the credit quality of Sagicor Life's investment portfolio and capital adequacy ratios, the agency said.

The ratings also are limited by Sagicor Life's high business concentration in countries with speculative-grade sovereign ratings and high earnings volatility due to property catastrophe losses and deteriorating capital adequacy as a result of higher credit risk in its fixed-income portfolio, S&P said.

However, Sagicor Life maintains a good competitive position in the Caribbean life insurance market, the agency added.

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