S&P downgrades AXA

S&P said it lowered the long-term counterparty credit and financial strength ratings on AXA Equitable Life Insurance Co., AXA Life and Annuity Co. and MONY Life Insurance Co. of America to A+ from AA-.

The outlook is stable.

The agency also said it lowered the long-term counterparty credit rating to A- from A on AXA Financial Inc., the group's non-operating holding company, and placed the rating on CreditWatch with negative implications.

AXA Financial Group is a majority owner of AllianceBernstein, the agency said.

The ratings on AllianceBernstein are unaffected by the news.

AXA announced plans to pursue an initial public offering of a minority interest in its U.S. life insurance and asset-management operations in the first half of 2018, S&P said.

The agency said it expects AXA to support the U.S. life operations based on news that it will convert a $1 billion intra-company loan to AXA Financial Group into equity.

S&P also said it expects AXA Financial Group to manage its operations with a strong reserving and capitalization policy before and after the IPO.

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