Fitch Ratings on March 14 downgraded Prudential Plc and some of its units, after the company announced plans to split its U.K. & European businesses — M&G Prudential — from the rest of the group.
The agency downgraded the long-term issuer default ratings of U.K.-based Prudential Plc to A from A+ and that of U.S.-based Jackson National Life Insurance Co. to A+ from AA-, with a stable outlook on both entities. The F1 short-term issuer default rating of Prudential was affirmed and the senior debt was downgraded to A- from A.
The agency also downgraded the long-term insurer financial strength rating of Jackson National Life Insurance Co., Jackson National Life Insurance Co. of New York and Prudential Assurance Company Ltd to AA- from AA, with stable outlooks on the three companies.
Jackson National Life Insurance Co.'s short-term insurer financial strength rating was affirmed at F1+.
Fitch said it will no longer rate Prudential Assurance Co. and Jackson National Life Insurance by applying a group insurer financial strength rating approach based on the consolidated profile of Prudential's global insurance operations. The downgrade of Prudential Assurance Co. reflects the removal of the global diversification benefits and that the company's profitability has not grown as strongly as Jackson and Prudential Corp. Asia Ltd.
