Feller places Security Previsión on credit watch

Chilean ratings agency Feller Rate has placed its A- rating of local general insurer Seguros Security Previsión Generales' (Security Previsión) obligations on "credit watch in development," the agency said in a statement. The agency said the move was due to the announcement at the end of March that financial group Security had agreed with compatriot economic group Penta to merge Security Previsión and fellow local general insurer Las Américas. Penta will hold 70% of the new company and Security the remainder. The new insurer will operate under the name Compañía de Seguros Generales Penta-Security. A due diligence process is currently being conducted by both parties that expect the merger to be completed by July 30. Feller Rate is a strategic affiliate of international ratings agency Standard & Poor's. To read the full Feller statement on Seguros Security (in Spanish), place the following link into your browser:http://www.bnamericas.com/rc_search_detail.xsql?id_documento=48888&Tx_idioma=E