S&P mulls Pru ratings cut over debt concerns

clock

Standard & Poor's is considering cutting its rating on Prudential over leverage concerns following its $35.5bn deal to buy AIG's Asian business.

Fund managers have also expressed concern about the price Pru has paid to become the biggest insurer in Asia. S&P is concerned the deal will dilute one of Prudential's biggest ratings strengths, its successful UK business, according to reports. The ratings agency's long-term counterparty rating for Pru is A-plus, one of the highest, but this could be cut slightly on debt concerns. S&P says: "The transaction likely will have a material adverse impact on Prudential's key credit metrics, such as capitalization and fixed-charge coverage." LV Asset Management's Michael Crawford, who ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Industry

Advisers and retail investors warned on Aviva £450m preference share cancellation impact

Advisers and retail investors warned on Aviva £450m preference share cancellation impact

Follows institutional investor vote that saw none vote against

Jen Frost
clock 21 March 2025 • 9 min read
Natixis IM CEO: A lot of active management is 'index management'

Natixis IM CEO: A lot of active management is 'index management'

Thought Leadership Summit 2025

Cristian Angeloni
clock 21 March 2025 • 2 min read
FCA bans Crispin Odey from UK financial services industry

FCA bans Crispin Odey from UK financial services industry

Lack of integrity

Sorin Dojan
clock 17 March 2025 • 2 min read
Trustpilot