Moody’s lowers BrightHouse, notes to B3

Moody's Investors Service said it downgraded BrightHouse Group plc's corporate family rating to B3 from B2, probability of default rating to B3-PD from B1-PD and the rating on its £220 million senior secured notes to B3 from B2.

The outlook is negative.

Moody’s said the action primarily reflects the following drivers: (a) Further weakening of the company's credit metrics driven by regulatory changes and adverse product mix; and (b) upcoming refinancing risk on its senior secured notes maturing in May 2018.

The downgrade reflects the rapid deterioration in the company's metrics in the second quarter due to the impact of new procedures introduced by the Financial Conduct Authority (FCA) in February 2016 as part of its ongoing authorization across the industry, the agency explained.

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