S&P: Aviva unchanged

Standard & Poor's said the ratings on Aviva Group are unchanged by its agreed sale of its breakdown recovery firm to the Carlyle Group for £1 billion.

The sale should be completed at the end of the third quarter of 2011, S&P said.

The sale is in line with an expectation that the group will continue to improve its capital adequacy and capital quality, S&P said, and only has minor negative implications for its coverage ratio.

The proceeds of the sale will further strengthen the group's liquidity, supporting its intention to reduce hybrid debt by at least £700 million over the next three years, the agency said.

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