14th May 2021 21:14
(Alliance News) - Moody's Investors Service on Friday changed its outlook on Prudential PLC to stable from negative, but affirmed its long-term credit ratings at A2.
The credit agency's action follows the Insurance Authority of Hong Kong's announcement to designate Prudential Corp Asia Ltd as the designated insurance holding company under the group-wide supervision framework implemented on March 29.
The outlook change reflects Moody's view that the implementation supports the narrower notching that is already applied to Prudential's senior unsecured debt rating, in line with the agency's methods where the group is supervised under an enhanced group supervisory regime.
In addition, group supervision for Prudential is expected to offset the negative pressure on its credit profile resulting from the diminished diversification of the group's earnings, capital and cashflows following planned demerger of its US business Jackson Financial Inc.
Shares in the 172-year old insurance firm closed 2.5% higher at 1,512.46 pence on Friday.
By Dayo Laniyan; [email protected]
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