17th Oct 2019 15:56
(Alliance News) - Moody's Investors Service on Thursday said it assigned an A2 long-term issuer rating to M&G PLC, with stable outlook.
The company said this rating action follows insurance company Prudential Public Ltd's announcement that it expects to complete the demerger of M&G, its UK life insurance and Europe asset management business, on October 21, 2019.
Moody's said the A2 rating for M&G is supported by the company's "strong name and leading position in the UK with-profits savings", as well as M&G's increasing footprint in Europe as well as the global asset management industry. The firm's "solid and stable operating profitability" was also a factor.
M&G generated GBP1.6 billion of operating profit for year ended 2018, and in Moody's view the company's profitability is "as strong and consistent with that expected of an Aa-rated entity".
Moody's also affirmed the Aa3 insurance financial strength rating on Prudential Assurance Company Ltd, again with stable outlook.
Prudential shares were up 2.8% in London at 1,500.00 pence each on Thursday afternoon.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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