Moody’s affirms Old Mutual

Moody's Investors Service said it affirmed the Ba1 long-term issuer and Ba2 (hyb) subordinate debt ratings of Old Mutual plc, and the Baa2 insurance financial strength rating of Old Mutual Life Assurance Co. (South Africa) Ltd. (OMLAC(SA)), with stable outlook.

In the same action, the agency affirmed the A2 IFS rating of Old Mutual Wealth Life Assurance Ltd., Quilter plc's life insurance subsidiary, and changed the outlook to stable from negative.

Moody’s said the actions follow last week’s initial public offerings of two operations: (a) Quilter, formerly Old Mutual Wealth; and (b) Old Mutual Ltd., a new South African holding company for OMLAC(SA), Nedbank Ltd. and the group's other African and emerging markets businesses.

“These two IPOs are in line with Old Mutual's strategy of managed separation, initiated in 2016, by which the group would be separated into four individual businesses,” Moody’s said in a news release.

Concurrently, Old Mutual plc, formerly the group holding company, became a subsidiary of Old Mutual Ltd. During the remainder of 2018, Old Mutual Ltd. will reduce its stake in Nedbank to 19.9% from the current 52%, substantially completing the managed separation, the agency explained.

© 2015 Prospect News.
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