Seguros Generales Suramericana S.A.

The stable outlook on Seguros Generales Suramericana for the next 12-18 months reflects that on Colombia. The rating on the insurer will move in tandem with that on the sovereign because we don't believe Suramericana group could withstand a sovereign default scenario, given its large asset concentration in the country. The stable outlook also incorporates our expectation that the group will maintain its credit fundamentals and level of support to its core subsidiaries. We could downgrade the insurer if we take the same action on Colombia, which is not part of our base-case scenario for the next 12-18 months given the stable outlook on the sovereign. In addition, we don't expect a downgrade due to changes in the group's credit

... continues benefiting from Suramericana group's support. We view the insurance company as core to the Suramericana group (Suramericana). As a result, we equalize our ratings on the subsidiary to the group credit profile (GCP), which is currently at '##+'. We limit the GCP by our foreign currency ratings on Colombia (##+/Stable/B) because we don't believe the group could withstand a sovereign default scenario, given its still large exposure to Colombia in the form of assets and premiums. We expect Suramericana group's credit quality to remains stable in the next few years. The group has a '###' potential GCP--our measure of its intrinsic creditworthiness before the sovereign influence--which reflects its strong competitiveness thanks to its brand recognition, well-diversified income sources, and satisfactory earnings prospects. In addition, capital adequacy prospects are reasonable because we expect the group's total adjusted capital (TAC)...

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