Moody’s downgrades AMP Group

Moody's Investors Service said it downgraded of AMP Group Holdings Ltd. and AMP Group Finance Services Ltd., including the finance group’s foreign-currency senior unsecured debt rating to Baa3 from Baa2

The outlook is now negative. Previously, the ratings were on review for downgrade. This rating action concludes the review for downgrade that was started on March 2, the agency said.

“The downgrade of AMP Group and the AMP Group Finance Services reflect the lower business diversification of the group following the planned demerger of its AMP Capital Investors business. The planned demerger is also likely to lead to a weaker earnings profile and lower financial flexibility with, high levels of gross debt and lower earnings diversification,” Moody’s said in a press release.

The outlook reflects the potential for more negative earnings pressure from lower margins in its wealth management business and higher costs with respect to its business reorganization, which could lead to lower profitability, the agency explained.

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