S&P downgrades AXA ratings
Standard & Poor’s has moved to lower its ratings from AA to A+ on The National Mutual Life Association of Australasia and The National Mutual Life Association of Australasia (NZ) (NMLA), which trade as AXA Australia and AXA New Zealand respectively. This follows AMP's attempt, working with AXA’s head office in France, to acquire AXA Asia Pacific last weekend.
Standard & Poor’s said its ratings downgrade was a response to AXA Group’s decision to offload AXA Australia and New Zealand, which indicated that the parent company no longer considered the Australian and New Zealand markets to be a strategically core part of its offering.
The ratings agency added that even if the deal was to fail, it believed there was still enough support from the parent organisation should capital be required.
According to Standard & Poor’s: “We believe that if the deal were to fail, AXA would remain supportive of its Australian and New Zealand operations should capital be required. If the deal succeeds, a financially sound parent with a strong presence in Australia would likely acquire NMLA and provide business and financial support.”
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