On Wednesday, the ratings agency Fitch Ratings announced its decision to affirm Grupo SURA's national and international ratings and remove the Rating Watch Evolving. This rating action took into account: the diversification of the Company’s business profile, its competitive position in Latin America, the stability of its business model, the quality of its investments, the sound and growing trend of dividends received, profitability, and decreased leverage.

"Fitch's affirmation of our ratings only goes to show  the strength of our investment portfolio and the power of our businesses throughout the region. Indeed, this year we are forecasting to receive COP 2.2 trillion in cash, including dividends from our portfolio investments, which gives us the strength and flexibility to continue making headway with our strategy. Consequently, Fitch's rating action coincides with the positive results we announced to the market in February and also with the projections we have drawn up for the rest of the year," stated Juan Esteban Toro Valencia, Grupo SURA´s Chief Corporate Finance Officer.

Thus, Grupo SURA's Long-Term Foreign and Local Issuer Default Ratings remained at "BB+", for which a negative outlook was assigned. This reflects the recent rating action on Colombia's sovereign notes. As Fitch went on to explain: "Grupo SURA's operational concentration mainly in the Colombian banking and insurance sectors, inherently links its credit profile to the sovereign rating of Colombia."

On the other hand, our national long-term rating was reaffirmed at "AAA" with a stable outlook and the national short-term rating was reaffirmed at "F1+".

According to this rating firm, Grupo SURA's credit ratings reflect its diversified business profile, with dominant local franchises and revenue diversification in regulated financial industries, including pensions, banking and insurance services, in 10 Latin American countries. With this, the Company has a "strong business profile" and a clear "competitive position within the region".  It also highlights Grupo SURA's consistent strategy and execution, which is reflected in growing upstream dividends from, on the one hand, its subsidiaries  SURA Asset Management and Suramericana, and on the other, through its majority (noncontrolling stake) in Bancolombia,,

In the rating agency's opinion, the sound investment position of Grupo SURA's portfolio supports the Company's financial profile and is the main reason for the assigned ratings. Other highlights include: profitability, deleveraging and a sound operating expense coverage thanks to "strong upstream dividends adequately covering its fixed expense and debt service”

In the light of the above, Grupo SURA continues to advance with its strategy of creating added value based on a powerful, diversified and sound investment portfolio with growth opportunities throughout the region.

For more information, see Fitch Ratings ‘official press release by clicking on the following link.