S&P: Sagicor Finance on positive watch

S&P said it placed the B rating on Sagicor Finance (2015) Ltd.'s $320 million seven-year senior unsecured notes on CreditWatch positive following Sagicor Financial Corp. Ltd.'s re-domiciliation to Bermuda from Barbados and restructuring of Sagicor Life Inc.

The agency also said it placed the BB- issuer credit and financial strength ratings on Sagicor Life on CreditWatch developing.

The rating actions follow news of Sagicor Financial’s domicile move to Bermuda from Barbados and the changes in the corporate structure, S&P said.

Both factors could reduce Sagicor’s exposure to the potential default of Barbados because the company is no longer based in that country, the agency said, and cash flows from each operating subsidiary could flow directly to Sagicor Financial.

The sovereign rating on Barbados no longer imposes a limit on Sagicor Finance's issue-level rating, S&P said.

But it continues to be considered as part of Sagicor Life’s ratings because that remains domiciled in Barbados, the agency added.

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