S&P’s lowered its long-term counterparty credit and insurer financial strength ratings on various operating entities of U.K.-based Royal & Sun Alliance Insurance Group PLC (RSA) to “A” from “A+” following a decline in the group’s capital adequacy. The outlook is negative.
At the same time, S&P’s lowered to “BBB+” from “A-” its junior subordinated debt rating on notes issued by RSA and guaranteed by Royal & Sun Alliance Insurance PLC (RSAIP; local currency “A”/Negative/鈥�, foreign currency “A”/Negative/”A-2”), the main operating company of R&SA. In addition, S&P’s lowered to “A-2” from “A-1” its short-term rating on RSAIP’s $1 billion CP program.
The ratings on RSA reflect the group’s excellent global market position in general insurance and an improving earnings outlook. Offsetting this, capitalization is not consistent with the ratings, and the group’s ability to secure external capital is restricted.
Was this article valuable?
Here are more articles you may enjoy.
‘We’ll Want Some Proof’: State Farm CEO’s Take on NY Auto Insurance Reforms 
KPMG Australia Scandal Widens After it Confirms Optus Data Was Misused 
Flood Insurance Gap Will Squeeze Local Governments and Homeowners, Moody’s Says 
Mississippi Insurance Dept. Top Examiner Named in $90M Credit Union Theft Suit From This Issue
