S&P may cut Manulife

Standard & Poor's said it placed an A counterparty credit rating on Manulife Financial Corp. on CreditWatch with negative implications, along with the AA counterparty credit and financial strength ratings on its core and guaranteed insurance operating subsidiaries.

The subsidiaries include the Manufacturers Life Insurance Co., John Hancock Life Insurance Co. (USA), John Hancock Life & Health Insurance Co., John Hancock Life Insurance Co. of New York, Manulife (International) Ltd., and Manulife Seimei Hoken Kabushiki Kaisha, the agency added.

The rating depends on explicit support from the company's lead core subsidiary, Manufacturers Life, in the form of a claims guarantee for policyholder obligations, S&P said.

The agency said it placed an AA- counterparty credit rating on Manulife Bank of Canada on CreditWatch negative.

The negative watch reflects Manulife's continuing earnings volatility and material noncash goodwill impairments that could reach C$3.2 billion, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.