S&P moves Suncorp view to negative

S&P said it revised its outlook for Suncorp Group Ltd. to negative from stable and affirmed its A+ issuer rating.

On Monday, Suncorp, a nonoperating holding company, reported it is selling its banking operations, Suncorp-Metway Ltd. (SML), to Australia and New Zealand Banking Group Ltd.

“The outlook revision on Suncorp reflects the likelihood that we will downgrade the nonoperating holding company by one notch after the completion of the sale of SML to ANZ (AA-/stable/A-1+). We may widen the notching between the operating companies and nonoperating holding company to reflect a reduction in the earnings diversity the banking operations provide to the nonoperating holding company,” the agency said in a press release.

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