Sagicor rating not affected RBC acquisition
Standard & Poor’s Ratings Services (S&P) said today that its ‘BB+’ financial strength and issuer credit ratings on Sagicor Life Inc. (Sagicor) and its ‘BB-‘ ratings on Sagicor Finance Ltd’s US$150 million, ten-year senior unsecured notes are unaffected following the insurance company’s announcement to acquire RBC Royal Bank(Jamaica) Ltd. and RBTT Securities Jamaica Ltd.
The transaction represents about eight per cent of Sagicor’s investment portfolio in Jamaica and three per cent of its total investments.
According to S&P, its analysis of capital adequacy and liquidity, the acquisition would not add material risk to the group due to its size.
“Additionally, this acquisition won’t increase Sagicor’s exposure to Jamaica because it will fund the transaction with resources already allocated to that country. The transaction is subject to the respective regulatory approvals by Jamaican authorities,” a release from S&P noted. (GE/PR)