Prudential A+ credit rating 'under threat'


Life and pensions giant Prudential could see its A+ credit rating downgraded by Standard & Poor's (S&P), the FT reports.

The paper said there was a one in three chance the ratings agency would cut the insurer's rating due to low interest rates creating big risks for the insurance sector. S&P added Prudential's plans to focus less on its historic base in the UK and more on risker overseas markets meant its rating was place on "negative" outlook. The FT said the threatened downgrade came as shares in Prudential, the country's biggest insurance firm, were trading at levels close to their highest in 12 years. S&P has rated the Pru at A+ since 2006. It said this could be reduced within the next two years.

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