Fitch affirms Sagicor

Fitch Ratings said it affirmed Sagicor Financial Corp. Ltd.'s long-term issuer default rating at B.

The outlook is stable.

The agency said the ratings are constrained by a view of the economic environment and the sovereign risks, including transfer and convertibility risks, in Jamaica that are due primarily to the regional segments' significant earnings contribution and capital relative to the consolidated group.

Fitch said that in its view, the funds available in external accounts, which are largely owned by the Jamaican operating subsidiaries, are tied to Jamaica transfer and convertibility risks as those funds would potentially move back into the Jamaican subsidiaries during an imposition of foreign exchange controls in an adverse Jamaica scenario.

Thus, Jamaica's country ceiling of B was applied to the company’s issuer default rating, the agency said.

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