S&P puts Sagicor Life on negative watch

S&P said it revised the CreditWatch designation on the BB- counterparty credit and financial strength ratings on Sagicor Life Inc. to negative from developing.

The outlook revision reflects that the upside scenario for Sagicor is no longer possible after the downgrade of Barbados to B- from B, the agency said.

The BB- rating on the company already reflects the maximum possible rating differential above the B- sovereign rating on Barbados, S&P said.

The CreditWatch negative reflects the potential downgrade to the level of country’s sovereign rating, the agency said.

The current plans to overhaul the group's corporate structure include separating most Caribbean operations and make them direct subsidiaries, leaving Sagicor Life solely its Barbadian operations, S&P explained.

The agency said it believes this could reduce Sagicor Life’s importance to the group.

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