S&P lowers ENSA view to negative

S&P said it revised the outlook on ENSA Seguros de Angola to negative from stable and affirmed its B- financial strength rating.

The negative outlook reflects a view that ENSA's business and financial profiles are highly susceptible to the macroeconomic environment in Angola over the next 12 months, the agency said.

The ratings reflect the significant increase in general government debt as a percentage of GDP in 2018, stemming partly from the sharp depreciation of the Angolan kwanza on the government's foreign-currency-denominated debt stock, S&P said.

Although ENSA Seguros de Angola's stand-alone credit profile has shown some signs of improvement since the last review on the back of slightly stronger liquidity and quality of capital following a large inflow of outstanding premiums, the sovereign fiscal pressures and challenging economic environment present headwinds, the agency said.

The company is 100% owned by the Angolan government, S&P said.

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