OREANDA-NEWS. Ratings has placed the Insurer Financial Strength Ratings of 'BB' on the International scale and 'AAA(slv)' on the National scale for SISA Vida, S.A. Seguros de Personas (SISA Vida) on Rating Watch Negative. The agency took this action following the announcement on Dec. 21, 2015 of the sale of the insurance and consumer and commercial banking operations of Citi in El Salvador, which does not include Citibank, N.A., to Terra Group (not rated by Fitch). The transaction is subject to approval by El Salvador regulators.

Terra Group is a conglomerate rooted in Honduras which participates in several key industry sectors of the Central American economies as well as in some South American countries. Terra Group has a track record of 37 years, with investments in El Salvador since 2008, although this will be its first incursion into the financial and insurance sector.

KEY RATING FACTORS
According to Fitch's Financial Group Criteria, the current ratings are based on the potential support that SISA Vida would receive from its shareholders if needed. The agency believes that Citigroup, with a Fitch International scale rating of 'A', Stable Outlook, has the financial capacity to support these subsidiaries. In Fitch's view, support from Citi will be forthcoming until such transaction is approved by regulators.

RATINGS SENSITIVITIES
The Negative Watch indicates that the rating of SISA Vida will decrease after the approval from the corresponding regulator authorities - expected to occur during 2016 - because the insurance companies will no longer have the support of Citigroup. Upon completion of the acquisition by Terra Group, SISA Vida will be rated strictly on the basis of the company's own financial profile.