Fitch revises Old Mutual Wealth to positive

Fitch Ratings said it revised the rating outlook on Old Mutual Wealth Life Assurance Ltd. to positive from stable. The outlook revision follows that on ReAssure Group plc’s ratings.

At the same time, Fitch affirmed Old Mutual’s long-term issuer default rating at A.

Old Mutual’s ratings are linked to that of ReAssure, following the announcement in August of ReAssure’s intention to acquire it. Fitch said it views the strategic importance of Old Mutual as a core asset to the ReAssure group. This reflects Fitch’s view that the acquisition of Old Mutual supports ReAssure’s strategic objectives as a specialist closed-life consolidator, and that this strategy relies on ultimately fully integrating Old Mutual into ReAssure.

“Our assessment remains predicated on the successful conclusion of the acquisition by ReAssure, and our view that non-completion risk for this transaction is limited,” said Fitch in a press release.

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