Fitch downgrades all AXA entities’ IFS ratings
Fitch has downgraded all AXA entities’ Insurer Financial Strength (IFS) ratings from AA to AA-.
The credit rating agency has also downgraded AXA SA’s long-term Issuer Default Rating (IDR) from AA- to A and its short-term IDR from F1+ to F1.
In addition, all loong-term IDR and IFS ratings have a Negative Outlook, reflecting Fitch’s view that difficult conditions in global financial markets are likely to continue.
The changes take into account the group’s lower capital adequacy and reduced profitability resulting from the extreme stress in financial markets over the past months.
According to Fitch, AXA’s capital position has “materially reduced from the high levels seen at end-2007 but is expected to show some resilience against further deterioration in financial markets”.
The rating agency says it expects profitability to remain under pressure, following a 17% fall in AXA’s annual earnings for 2008, compared with a year earlier.
However, Fitch describes AXA’s position as “one of the world’s largest providers of insurance and financial services, benefiting from excellent risk management and geographic diversification, key competitive advantages in products and distribution capabilities, quality of its management team and consistent strategy”.
Category: Axa Insurance News, Financials, Insurance News
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