Moody’s eyes Aegon for downgrade

Moody's Investors Service said it placed Aegon NV's debt ratings on review for downgrade, except for the rating of its restricted tier 1, preferred stock non-cumulative rating, which was affirmed at Baa3(hyb). The ratings of the debts issued by Aegon's associated funding vehicles have also been placed on review for downgrade.

“The rating action follows Aegon's announcement that it will combine its Dutch operations with ASR Nederland NV (ASR), a Dutch insurance group, to create a leading Dutch insurance player. Aegon will receive €2.5 billion in cash proceeds and a 29.99% stake in the combined entity. The cash will be partly returned to shareholders and partly used to pay down debts,” the agency said in a press release.

The review will focus on evaluating the cash flows that will be available at the holding company, and the diversification of these cash flows, Moody’s said.

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