Fitch downgrades Old Mutual

Fitch Ratings said it downgraded Old Mutual plc's long-term issuer default rating to BBB from BBB+.

Fitch also said it affirmed Old Mutual Wealth Life Assurance Co. Ltd.'s insurer financial strength rating at A.

The outlook is stable.

Fitch also said it downgraded the insurer financial strength rating of Mutual & Federal Insurance Co. Ltd. to BB+ from BBB-.

The downgrades follow the downgrade of South Africa's long-term local-currency issuer default rating to BB+ from BBB-, the agency said.

The ratings were not affected by the sovereign downgrade as the relative creditworthiness of South African insurance groups is unchanged, Fitch said.

Old Mutual's issuer default rating is mainly driven by the credit quality of the Old Mutual Wealth business unit, including its contribution to group hard-currency interest coverage, the agency said.

Old Mutual's ratings are constrained by South Africa's long-term issuer default rating, reflecting the group's balance sheet and earnings exposure to South Africa, Fitch added.

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