Moody's lowers AXA Financial

Moody's Investors Service said it downgraded the senior unsecured debt rating of AXA Financial Inc. to Baa2 from Baa1, reflecting the removal of one notch of uplift related to implicit support provided by AXA SA.

This downgrade follows the recent form S-1 filing that indicates AXA SA's continued pursuit of a partial initial public offering of its U.S. business and plans for the AXA US business to operate as a stand-alone entity, Moody's explained.

The outlook also was changed to stable from negative.

There is uncertainty regarding the degree of ongoing support the AXA US business will receive from the parent, the agency said.

The ratings are based on well-established positions in individual annuity and life insurance, particularly in the individual retirement, life insurance, 403(b) savings and estate-planning markets, Moody's said.

The ratings also consider the company's utilization of diversified distribution channels, including a strong captive agency force, as well as its diversified earnings that benefit from economies of scale and solid capital, the agency said.

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