Portuguese insurance group Fidelidade - Companhia de Seguros S.A. (Fidelidade) has strengthened its capital position through retained earnings and hybrid issuances. In our view, Fidelidade benefits from a sizable and internationally diversified insurance portfolio--with leading positions in Portugal and Peru--and is close to reaching the highest 99.99% confidence interval according to our capital model. We therefore revised our outlook on Fidelidade and internal reinsurer Fidelidade Re – Companhia de Resseguros S.A. to positive from stable and affirmed our 'A' long-term insurer financial strength and issuer credit ratings on both entities. We assigned our 'BBB' issue rating to the subordinated notes that are eligible as restricted tier 1 capital under the EU's Solvency II regulations, which Fidelidade issued in 2024. We
