Fitch Downgrades Primerica Life Insurance Company IFS to ‘A+’
December 26th, 2009
Fitch Ratings has downgraded the Insurer Financial Strength (IFS) rating of Primerica Life Insurance Company (Primerica Life) to ‘A+’ from ‘AA-’, reflecting Fitch’s downgrade of Primerica Life’s ultimate parent, Citigroup Inc (Citigroup) yesterday. The rating has also been removed the Rating Watch Negative. The Rating Outlook is Evolving.
Primerica Life’s rating is linked to the ratings of Citigroup in accordance with Fitch’s group rating methodology. However, the Evolving Outlook associated with the IFS rating of Primerica Life Insurance Company (Primerica Life) reflects Fitch’s view that Primerica Life is no longer core to the operations of Citigroup Inc, and its rating could be raised or lowered in the event of divestiture. While there has been no direct public statement from Citigroup that Primerica Life is for sale, Fitch views recent public commentary by senior management around the company’s strategic direction to indicate a material probability that the company’s insurance assets, including Primerica Life, will be divested over the near to intermediate-term.
Fitch’s rating definitions and the terms of use of such ratings are available on the agency’s public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch’s code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the ‘Code of Conduct’ section of this site. The issuer did not participate in the rating process other than through the medium of its public disclosure.
Categories: Financial Services |
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