Fitch revises Ethias's outlook to stable

Fitch Ratings said it revised Ethias SA's outlook to stable from positive. Fitch also affirmed Ethias' issuer default rating at BBB+.

The outlook change is based on the significant uncertainty created by the global Covid-19 pandemic, which has resulted in high levels of volatility in capital markets. This, in turn, has resulted in a sharp drop in interest rates, as well as significant variability in stock, bond and derivative prices as well as a heightened risk of credit events.

The combination will likely create some pressure on earnings and variability in capital levels of European life and composite insurers, the severity and duration of which is impossible to predict. Fitch believes these conditions no longer support a positive outlook, the agency said.

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