Moody’s Upgrades Argentine Insurer

Moody’s has upgraded the financial strength rating of Sancor Seguros and subsidiary Prevencion ART to A1.ar from A2.ar and affirmed their global local currency ratings at B2 with stable outlook. The rating agency said that the upgrade of Sancor Seguros’ and Prevencion’s national scale rating was primarily driven by improved financial performance, sound market positions, and relatively stable adjusted combined ratios for both companies. Prevencion’s standalone credit profile also benefits from the support and integration with its parent company. However, says Moody’s, the companies have relatively weak investment portfolios and capital positions. Argentina’s elevated sovereign risk and poor operating environment are also major constraints to both companies’ credit profiles, Moody’s says.