6th Aug 2015 07:08
LONDON (Alliance News) - FTSE 250-listed life insurer Phoenix Group Holdings on Thursday said its two principal operating subsidiaries have been assigned insurer financial strength ratings of 'A' by Fitch Ratings, the ratings agency.
Phoenix said the 'A' rating given to its Phoenix Life Ltd and Phoenix Life Assurance Ltd business will result in a 50 basis point reduction in the interest margin on its bank debt to 262.5 basis points, effective from August 28. This will relate to bank debt obligations of GBP780 million.
It also will give the group scope to secure lower-cost long-term funding and will give it broader access to capital markets, along with more flexibility in its debt issuance and improved opportunities to issue hybrid debt.
"This rating assessment is testament to Phoenix's progress in significantly reducing its gearing level and achieving a comprehensive debt restructuring. We have been able to demonstrate that the group is now in a strong financial position, reducing our cost of debt and enabling us to focus our efforts on growing Phoenix through closed life acquisitions and thereby delivering greater enterprise stability for policyholders and value to shareholders," said Clive Bannister, Phoenix's chief executive.
Shares in Phoenix were up 0.6% to 875.00 pence early Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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