Aviva Plc’s Credit Rating Outlook Upgraded by S&P
February 9, 2011 by Kevin Crowley
By Kevin Crowley – Feb 9, 2011
Aviva Plc’s outlook was upgraded by Standard & Poor’s Ratings Services after the U.K.’s second- biggest insurer announced plans to cut its debt amid an improving forecast for the firm’s earnings.
Aviva’s long-term counterparty credit rating was affirmed at A, the sixth-highest investment grade, and its outlook raised to “stable” from “negative,” S&P said today in a statement.
“Whether it’s the competitive position of the group, the capital position of the group or the strategic outlook — there are ticks in all of those boxes,” Aviva Chief Executive Officer Andrew Moss said in an interview. “It’s a vote of confidence all round.”
The upgrade brings London-based Aviva in line with European insurers including Prudential Plc, Legal & General Group Plc, Allianz SE and Swiss Reinsurance Co., which all have “stable” outlooks and at least an A rating, according to S&P. Aviva last month announced plans to repay 700 million pounds ($1.1 billion) of borrowings and said it’s reduced holdings of Greek, Spanish, Portuguese and Irish sovereign debt.
Aviva’s operating earnings rose about 15 percent in 2010 and will likely grow by 10 percent this year, S&P said. The insurer will also increase the levels of capital generation it achieved in 2010 this year, the ratings firm said.
Aviva is scheduled to report its 2010 earnings on March 3.
To contact the reporter on this story: Kevin Crowley in London at kcrowley1@bloomberg.net
To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net;
