Confie Seguros Holding II Co.'s operating performance has eroded modestly and is trailing our 2017-2018 expectations. At the same time, its covenant cushion under its total net leverage ratio has tightened and could remain under 10% through 2018. As a result, we are lowering our rating on Confie Seguros Holding II Co. and its parent Confie Seguros Holding to 'B-' from 'B'. The stable outlook reflects our expectation for EBITDA to grow modestly over the next 12 months while the company seeks to conserve liquidity through fewer acquisitions, allowing covenant headroom to strengthen incrementally. On Aug 18, 2017, S&P Global Ratings lowered its long-term corporate credit rating on Confie Seguros Holding II Co. and its parent Confie Seguros Holding Co.