Fitch rates Sul America note B

Fitch Ratings said it assigned Sul America SA, the holding company controlling the Sul America Seguros insurance group, foreign- and local-currency issuer default ratings of B+ and short-term foreign- and local-currency ratings of B. The agency also assigned Sul America Seguros' proposed $150 million issuance a rating of B with a recovery rating of 5.

The outlooks is stable.

The ratings reflect the extensive track record of Sul America Seguros operations in the domestic markets, its established franchise in Brazil, the expertise of its management and the goodwill associated with its name, Fitch said.

The ratings also reflect the company's leverage, which is used for financing its insurance operations. Compared to the largest insurance companies in Brazil, Sul America Seguros exhibits lower capitalization ratios and higher operational leverage, the agency said. The company operates with relatively tighter liquidity and reports volatile results, Fitch added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.