Switzerland-based Zurich Financial Services Group (ZFS) has announced a major long-term distribution agreement with Banco Santander S.A. (AA/Negative/A-1+) in Latin America, including the purchase of a 51% stake in the bank's Latin American insurance operations. We are affirming our 'AA-' long-term counterparty credit and insurer financial strength ratings on Zurich Insurance Company Ltd. and related core subsidiaries (collectively ZFS). The stable outlook reflects our expectation that the transaction will not materially weaken ZFS' capitalization and could provide the group with the potential to reinforce its competitive position. On Feb. 24, 2011, Standard&Poor's Ratings Services affirmed its 'AA-' long-term counterparty credit and insurer financial strength ratings on the various operating entities of Switzerland-based insurance group Zurich Financial Services (collectively
