S&P rates Prudential Singapore AA

Standard & Poor's said it assigned an AA local-currency long-term counterparty credit and insurer financial strength ratings to Prudential Assurance Co. Singapore (Pte) Ltd. (Prudential Singapore).

The outlook is stable.

The ratings reflect a view of the entity as a core operating subsidiary of Prudential plc.

Prudential Singapore is a key part of one of the group's strategic objectives, which is to grow in selected Asian countries, S&P said.

It also will be integral in achieving the group's announced 2012 to 2017 goals, including growth of 15% per year in Asian life and asset management pretax IFRS operating profit, the agency said.

Although the operations are currently less significant to the group than the United Kingdom or U.S. operations - representing about 7% of the group's operating profits and present value of new business premiums at half-year 2013 - Prudential Singapore contributes a substantial portion of dividends from subsidiaries and to the group's embedded value, S&P said.

The agency said it expects Prudential Singapore to retain its current profitability relative to the group and continue to increase its contribution to the overall group.

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