Moody’s alters Sura outlook to negative

Moody's Investors Service said it changed the outlook for Sura Asset Management, SA (SUAM) to negative from stable and affirmed its ratings, including the Baa1 issuer rating and the Baa1 senior unsecured debt ratings assigned to its $500 million and $350 million global notes due in 2024 and 2027.

“The change in outlook to negative from stable reflects the current challenging conditions for investment management business and the growing risk of regulatory changes faced by the company that could result in negative implications for Sura's business size and future profitability. Current administrations in Chile and in Colombia are discussing reform in the pension fund systems that might result in changes to or reduction of the role of private players in the industry.

“These reforms are expected to be discussed in Chile and Colombia respective Congresses and to be concluded in the next 12 to 18 months, within Moody's outlook timeline,” the agency said in a press release.

Moody’s noted that in December, Chile and Colombia together accounted for 61.6% of SUAM`s operating revenue and 49% of its mandatory pensions assets under management.

© 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.