Fitch cuts Momentum, ups Met

Fitch Ratings said it downgraded Momentum Group Ltd.'s national long-term rating to AA-(zaf) from AA(zaf) and its subordinated debt to A(zaf) from A+(zaf).

The agency upgraded Metropolitan Life Ltd.'s national long-term rating to AA-(zaf) from A+(zaf) and its subordinated debt to A(zaf) from A-(zaf) and Metropolitan Holdings Ltd.'s national long-term rating to A+(zaf) from A(zaf).

Momentum's and MetLife's ratings have been removed from Rating Watch negative and Rating Watch positive, respectively, and the outlook is stable.

The rating actions are due to the anticipated merger between Momentum and MetLife. The agency said the equalization of the ratings reflects its view that the merged entity's profile immediately following the merger will be weaker than Momentum's pre-merger profile but stronger than that of pre-merger MetLife.

Fitch considers the strength and diversity of the anticipated merged entity's distribution network, its strong domestic franchise, its strong capital position and the strategic relationship with the FirstRand group as key positive rating drivers.

Offsetting these are the uncertainties surrounding the integration of the merger, the agency added.

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