Moody’s could lift Hastings

Moody's Investor Service said it placed the B2 senior secured debt ratings on Hastings Insurance Group (Finance) plc and the Ba3 insurance financial strength rating on Advantage Insurance Co. Ltd. (AIC), the group's insurance operating subsidiary, on review for upgrade.

The action follows Hastings' Sept. 15 announcement that it intends to proceed with an initial public offering of the ordinary shares of a parent company of Hastings on the London Stock Exchange.

Moody’s said the review reflects its expectation that there will be a sustained material increase in equity base of both Hastings and AIC following the IPO and associated refinancing. This is likely to reduce materially Hastings’ financial leverage, calculated on a Moody's basis.

Furthermore, there is positive pressure on the ratings as Hastings continues to grow profitably, with the year-end 2014 return on capital (ROC) at 8%, and enhance its business franchise, the agency said.

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