Fitch upgrades Mapfre as Spain stabilises

The insurance financial strength ratings of Spanish re/insurer Mapfre and its subsidiaries have been upgraded by Fitch Ratings largely on the basis of a stabilisation of Spain's operating environment.

Fitch has upgraded Mapfre’s core subsidiaries' insurer financial strength (IFS) ratings to BBB+ from BBB. The outlook on all ratings is stable.

Fitch said the upgrade reflects the stabilisation of Spain's operating environment. It affirmed Spain's long-term issuer default rating at BBB late last year and revised the outlook to stable from negative. Consequently, Fitch said it considers Mapfre's operating environment as lower risk than in the previous year.

But Fitch also noted that the sovereign rating of Spain (BBB/Stable) continues to weigh on the group's ratings. With 56 percent of the group's financial assets invested in Spain, Mapfre remains substantially exposed to the Spanish economy.