Standard & Poor’s raises SulAmérica’s rating
Standard & Poor’s Ratings Services has just announced that it has raised SulAmérica S.A.’s rating from ‘B+’ to ‘BB-’ and that of Sul América Companhia Nacional de Seguros from ‘BB’ to ‘BB+’ with stable outlook. The agency believes that the insurance company has turned in solid performance consistently in recent years and has a strong cash position to sustain future growth.
According to the agency, the raise is consistent with the company’s track record of good margins in the vehicle and health insurance segments and the strengthening of its balance sheet.
The agency’s release adds that SulAmérica’s ratings also reflect the challenges it faces in Brazil’s highly competitive insurance sector after the recent mergers. This unfavorable scenario is offset by the company’s solid financial condition and its excellent competitive niche in Brazil’s vehicle and health insurance segments. SulAmérica has been improving profitability in recent years and reducing its debt as it benefits from ample cash generation. The management’s effective strategy of focusing on profitability and brand recognition has helped the company achieve these results.
Last updated on 10/23/2009