Fitch changes AXA to negative

Fitch Ratings said it changed the outlook for AXA SA and its subsidiaries, including AXA Financial, Inc., to negative from stable and affirmed the long-term issuer default rating at A, short-term issuer default rating at F1, senior debt at A-, subordinated and junior subordinated debt at BBB and commercial paper at F1.

The outlook revision reflects Fitch's concerns about the group's ability to improve profitability, notably in the context of low interest rates. Management has taken action aimed at reducing exposure to financial market movements, but the agency believes this will take some time to achieve results in the context of the group's exposure to a sizeable amount of intangible assets. In addition, Fitch views AXA's 29% debt leverage as outside its criteria guidelines for the rating category.

The agency said the affirmation of the ratings reflects its view of the group's solid capital adequacy.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.