BRC Ratings - S&P Global confirmed Grupo Argos' AAA issuer rating following the signing of the Spin-Off by Absorption agreement with Sura.

• This result reaffirms the structural solidity of Grupo Argos, as well as the favorable outlook for the businesses in which it participates, which continue to demonstrate strong fundamentals and significant growth potential in the region.
• The agreement between Grupo Argos and Grupo Sura will unwind their cross-shareholdings through a Spin-Off by Absorption operation.
• Earlier this month, Fitch Ratings also confirmed that no changes are expected in Grupo Argos’ credit rating.

BRC Ratings – S&P Global reaffirmed Grupo Argos’ AAA issuer rating after conducting an extraordinary review of the company and its commercial papers following the announcement of the Spin-Off by Absorption operation with Grupo Sura. Additionally, the BRC Technical Committee confirmed the long-term debt rating of Grupo Argos’ ordinary bonds as AAA and the short-term debt rating of its commercial papers as BRC 1+.

The rating agency’s reaffirmation underscores the strong capital structure of Grupo Argos, the favorable outlook of the businesses in which it participates, and the benefits of the announced transaction to unwind cross-shareholdings with Grupo Sura. This will allow Grupo Argos to focus more on infrastructure and construction materials, while Grupo Sura will concentrate on financial services, aligning with the business plans both companies have communicated to the market. At the same time, the transaction will enhance their ability to attract new investors and additional capital, strengthening their capacity to execute their long-term strategies.

The cross-shareholding model enabled Grupo Argos to achieve an annual equity growth rate of 20% over more than four decades, along with consistent and uninterrupted dividend payments year after year. Beyond simplifying the corporate structure of both companies, the Spin-Off by Absorption agreement with Grupo Sura will reinforce Grupo Argos’ capital structure and align with investor expectations.