Axa ratings affirmed but outlook negative

By Phil Boeyen, ShareChat Business News Editor

Friday 11th January 2002

Axa Australia and New Zealand have had their AA credit ratings affirmed by Standard & Poor's although the outlook has been dropped to negative from stable.

S&P says the change in outlook follows the revision earlier this week of the ratings outlook on the Australasian businesses' parent company, Axa Insurance Group, to negative from stable.

"The key rating factors are the group's extremely strong global business position in the world's leading insurance markets, very strong-although increasingly pressurised-capitalisation, and very strong management team and strategic track record.

"The outlook revision is based on the new and important challenge the Axa Group is facing, including restoring its operating performance to a level consistent with the current ratings within the next two years."

S&P says Axa Australasia plays a key role in the Axa Asia-Pacific Group (NZSE: AXA), which is a strategically important 51%-owned subsidiary of Axa Insurance Group.

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