Oct 2016 Financial News

Sagicor Financial Corporation Limited - Notice of Standard & Poor's Global Rating

Oct 03, 2016

SAGICOR FINANCIAL CORPORATION LIMITED
STANDARD & POOR’S GLOBAL RATINGS BULLETIN

On September 15, 2016, S&P Global Ratings placed its ‘B’ issue-level rating on Sagicor Finance (2015) Limited’s (SFL) $320 million seven-year senior unsecured notes on CreditWatch positive following Sagicor Financial Corporation Limited’s (SFC) re-domiciliation to Bermuda from Barbados, and the proposed restructuring of Sagicor Life Inc. (SLI). S&P also placed the ‘BB-‘issuer credit and financial strength ratings of SLI on CreditWatch developing.

The rating action followed the announcement by Sagicor that SFC had shifted its domicile from Barbados to Bermuda and had initiated its planned corporate reorganization. According to S&P Global Ratings, both factors could reduce SFC’s exposure to a Barbados potential default, as the company was no longer based in that country. As a consequence, the Sovereign rating on Barbados (at that time B/Negative) would no longer impose a limit on Sagicor Finance (2015) Limited’s rating. However, it would continue to influence the rating of SLI as it remained domiciled in Barbados. The rating of SLI was ‘BB-‘, two notches above the Barbados Sovereign which was rated ‘B’.

On September 27, 2016, following the September 23, 2016 downgrade of Barbados, S&P Global Ratings revised its CreditWatch on SLI from developing to negative; the rating remained at ‘BB-‘. The revision recognized the fact that the current rating of SLI, which remains domiciled in Barbados, already reflected the maximum possible rating differential above the now ‘B-‘ sovereign rating of Barbados. S&P Global Ratings is completing its group support analysis as part of the CreditWatch status and a downgrade to the level of Barbados is possible under specific scenarios as stated in their report.

S&P Global Ratings also confirmed that the ‘B’ issue-level rating on Sagicor Finance (2015) Limited’s $320 million seven-year senior unsecured notes was not affected by the September 23, 2016 downgrade of Barbados from ‘B’ to ‘B-‘.

For details on the full S&P Global Ratings press release visit www.standardardandpoors.com

Source:
The Trinidad and Tobago Stock Exchange Limited
Monday October 3, 2016