S&P rates Standard Life credit as 'A'

The ratings follow the demutualisation and subsequent listing of the company, which saw its shares start to trade earlier today. While based on a “very strong capital position and very strong market share in the UK life and pensions market,” the company still faces challenges in delivering new business profitably – especially in light of “its poor historical operating performance,” S&P states in an analyst note. The gap between the ‘A’ rating and the ‘BBB+’ one reflects S&P’s standard practice of applying a “two-notch gapping” between a plc and its actual operating company. The new...