Fitch revises Old Mutual view to evolving

Fitch Ratings said it revised the outlook on Old Mutual plc to evolving from stable.

The agency also said it affirmed Old Mutual’s long-term issuer default rating at BBB+, senior unsecured debt at BBB, subordinated debt rating at BB+ and short-term issuer default rating and commercial-paper rating at F2.

The outlook revision follows news of Old Mutual group’s new managed separation strategy whereby the group will be split into four separate businesses by 2018, Fitch said.

As a result, the agency said it revised its approach to rating the entities of the Old Mutual group from a group basis to a standalone basis, where the inherent credit strength of the major business units is assessed separately.

The reorganization aims to separate the group’s four major business units, namely Old Mutual Emerging Markets, Old Mutual Wealth, Nedbank and OM Asset Management, Fitch said.

This strategy is based on a conclusion there are no significant synergistic benefits in maintaining the company’s current group structure, Fitch said.

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