Moody's lowers Alfa

Moody's Investors Service said it announced that it has lowered the insurance financial strength ratings of the insurance operating subsidiaries of the combined Alfa Insurance Group to A1 from Aa3.

In the same action, Moody's said it also downgraded the senior debt ratings of the group's intermediate holding company Alfa Corp. to A3 from A2 with the commercial paper rating lowered to Prime-2 from Prime-1.

The outlook on the Prime-2 commercial paper rating is stable while the outlook on the insurer financial strength and senior debt ratings remains negative, the agency said.

According to Moody's, the downgrade reflects the company's outsized natural catastrophe exposure relative to capital, weak profitability of the overall group relative to peers, and reduced financial flexibility.

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