Moody’s trims Aegon

Moody's Investors Service said it downgraded Aegon NV's senior unsecured debt rating to Baa1 from A3 and subordinated/junior subordinated debt ratings to Baa2(hyb) from Baa1(hyb). The ratings of the debt issued by Aegon's associated funding vehicle have also been downgraded by a notch.

Concurrently, the agency affirmed the rating of Aegon's restricted tier 1 securities, preferred stock non-cumulative rating, at Baa3(hyb). The outlook has been changed to stable from ratings under review.

The downgrades follow Aegon's announcement on July 4 regarding the completion of the combination of its Dutch operations with ASR Nederland NV, Moody’s said. The action also follows the group's announcement of the redomiciling of its holding company to Bermuda, resulting in the Bermuda Monetary Authority becoming the lead supervisor for the group.

“The downgrade of the group's senior unsecured debt rating reflects the reduced geographic diversification of the holding company's cash flows, with a larger proportion originating from the U.S. following the disposal of the Dutch business to ASR. In addition, in Moody's opinion, the group-wide supervision that will apply to the holding company, in the European Union currently and later in Bermuda will be less effective given the predominance of U.S. operations,” the agency said in a statement.

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