(Repeat for additional subscribers)
April 29 (The following statement was released by the rating agency)
Fitch Ratings has upgraded Mapfre SA's (Mapfre) Issuer
Default Rating (IDR) to 'BBB+' from 'BBB' and its core operating subsidiaries'
Insurer Financial Strength (IFS) rating to 'A-' from 'BBB+'. The Outlook is
Stable. A full list of rating actions is at the end of this release.
KEY RATING DRIVERS
The rating actions follow the upgrade of Spain's Long-term IDR to 'BBB+' from
'BBB' (see "Fitch Upgrades Spain to 'BBB+'; Outlook Stable", dated 25 April 2014
Spain's creditworthiness still somewhat weighs on Mapfre's ratings. With 56% of
the group's financial assets invested in Spain at end-2013, Mapfre remains
substantially exposed to the Spanish economy.
Mapfre's ratings could be downgraded if its exposure to the Spanish insurance
market or sovereign debt results in investment losses with a material impact on
capital. Mapfre's ratings could also be downgraded if the Spanish sovereign
rating is downgraded.
Factors that could trigger an upgrade include an upgrade of the rating of Spain,
alongside strong group capitalisation (as measured by, for example, the
regulatory Solvency I ratio remaining above 200%), or exposure to Spanish debt
falling below 100% of group shareholders' funds (currently 115%).
The rating actions are as follows:
Mapfre Familiar; Mapfre Global Risks Cia De Seguros Y Reaseguos; Mapfre Vida SA
De Seguros Y Reaseguros; and Mapfre Re Compania De Reaseguros S.A
- IFS ratings upgraded to 'A-' from 'BBB+'; Outlook Stable
-Long-term IDR upgraded to 'BBB'; Outlook Stable
-EUR1bn 5.125% senior unsecured debt due 2015 upgraded to 'BBB-'
-EUR700m 5.91% subordinated debt due 2037 with step-up in 2017 upgraded to 'BB'