Fitch revises Old Mutual view to negative

Fitch Ratings said it revised the outlook of Old Mutual plc's long-term issuer default rating to negative from evolving and affirmed the rating at BBB+.

The agency simultaneously upgraded Old Mutual Wealth Life Assurance Co. Ltd.’s insurer financial strength rating to A from A-.

The outlook is stable.

Fitch has also affirmed the insurer financial strength rating of Mutual & Federal Insurance Co. Ltd. at BBB- and revised the outlook to negative from stable.

Fitch said the outlook revisions follow the Nov. 25 outlook revision of South Africa's long-term local currency issuer default rating of BBB- to negative.

The upgrade of Old Mutual Wealth reflects the agency’s updated view of its standalone credit profile, following the implementation of the group's new "managed separation" strategy, whereby the group will be split into four separate businesses by 2018. As a result, Fitch 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 profile of the major business units is assessed separately. Old Mutual Wealth’s ratings are not constrained by South Africa's sovereign rating.

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