Standard & Poor's is considering cutting its rating on Prudential over leverage concerns following its $35.5bn deal to buy AIG's Asian business.
Fund managers have also expressed concern about the price Pru has paid to become the biggest insurer in Asia. S&P is concerned the deal will dilute one of Prudential's biggest ratings strengths, its successful UK business, according to reports. The ratings agency's long-term counterparty rating for Pru is A-plus, one of the highest, but this could be cut slightly on debt concerns. S&P says: "The transaction likely will have a material adverse impact on Prudential's key credit metrics, such as capitalization and fixed-charge coverage." LV Asset Management's Michael Crawford, who ...
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