Fitch might lower AXA

Fitch Ratings said it placed AXA entities' insurer financial strength ratings and AXA SA's long-term issuer default rating on rating watch negative.

Fitch said the actions follow the March 5 announcement that AXA plans to acquire XL Group Ltd. for €12.4 billion, which will be paid entirely in cash. AXA expects to finance the cash consideration via €3.5 billion available cash resources, €6 billion from the IPO of AXA's U.S. operations (Life & Savings and Alliance Bernstein) planned in 2Q18, and related pre-IPO transactions and €3 billion via issuance of subordinated debt.

The target completion period is the second half of 2018, subject to regulatory approvals and approval by XL shareholders.

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