Fitch puts Suncorp, AAI unit on watch

Fitch Ratings said it placed the A+ long-term issuer default ratings of Suncorp Group Ltd. and its main non-life insurance subsidiary, AAI Ltd., on rating watch negative. The outlook was stable.

The RWN follows SGL's announcement on Monday that it will sell its fully owned banking subsidiary, Suncorp-Metway Ltd. to Australia and New Zealand Banking Group Ltd. for A$4.9 billion, Fitch said. The sale is subject to government and regulatory approval and is not likely to be completed until the second half of 2023.

“We expect to resolve the RWN once the sale is completed, or it is announced that the sale will not proceed and once detailed information on SGL's ultimate capital position is available. This is likely to take more than six months,” the agency said in a press release.

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