Cardif Colombia Seguros Generales S.A.

The negative outlook on Cardif Colombia mirrors that on the local currency sovereign rating. The latter limits the rating on the insurer because we don't believe it could withstand a hypothetical sovereign default on the country's local-currency-denominated obligations, given the company's large asset concentration in Colombia. We could downgrade Cardif Colombia in the next 12-18 months if we were to lower the local currency rating on Colombia. We could also downgrade Cardif Colombia to the sovereign foreign currency rating level if we think the company's capital and liquidity buffers are insufficient to withstand a sovereign default scenario in foreign currency. We could revise the outlook on Cardif Colombia to stable if we were to take the same action on our

...S&P Global Ratings expects Cardif Colombia Seguros Generales S.A. (Cardif Colombia)'s good capital and liquidity buffers will allow it to withstand a hypothetical sovereign default on the country's foreign currency obligations. This enables us to rate the insurer above our foreign currency rating on Colombia (##+/Negative/B), and up to our sovereign local currency rating (###-/Negative/A-3). We expect Cardif Colombia will maintain its solid intrinsic creditworthiness in the next two years, with a '###' stand-alone credit profile (SACP). The company benefits from a good competitive position across its major business lines. This is thanks to its successful bancassurance-like model, ability to build value for its major commercial partners, such as the development of flexible and modular products, and favorable profitability prospects. In addition, we expect it will maintain satisfactory capital levels and conservative investment policies. Most of its portfolio is invested in fixed-income securities...

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