AMP defends itself after S&P ratings downgrade
AMP Limited has defended the strength of its balance sheet in the face of another ratings downgrade.
The company filed its defence with the Australian Securities Exchange (ASX) late yesterday after ratings agency, Standard & Poors lowered its rating on AMP Limited and AMP Group Holdings from BBB+ to BBB.
It acknowledged that all AMP entities “remain on CreditWatch with negative implications”. However, it noted that S&P had left the rating for AMP Bank unchanged at BBB+.
The ASX announcement said the ratings changes related to the finalisation of the sale of AMP Life Limited.
“AMP continues to have a strong balance sheet and capital position, with Level 3 eligible capital above minimum regulatory requirements of $2.5 billion at 31 December, 2019,” the ASX announcement said.
It said all credit ratings assigned to AMP by other ratings agencies remained unchanged.
Recommended for you
Outflows from an Australian private markets fund manager have caused FUM at Pacific Current to decline by $1 billion in the last quarter.
Former RIAA chief executive Simon O’Connor has joined the ethical advisory panel at U Ethical Investors.
Financial services leaders are “all cashed up with nowhere to grow” when it comes to M&A activity, according to Deloitte, with 90 per cent saying they have strong balance sheets ready for an acquisition.
As fund managers are urged to diversify their product ranges, they are finding a faster way to do this is via an acquisition of existing firms but experts say it is not without potential culture clashes.
