Moody’s rates AXA Equitable debt Baa2

Moody's Investors Service said it assigned a Baa2 debt rating to the anticipated issuance of up to $4.1 billion of senior unsecured debt by AXA Equitable Holdings, Inc.

Proceeds are expected to mainly be used to repay internal debt to AXA SA (senior debt A2 negative) and its affiliates, a step toward operating as a stand-alone company.

Additionally, the agency affirmed the insurance financial strength ratings of AXA Equitable Life Insurance Co. and MONY Life Insurance Co. of America (MLOA) at A2, and the senior unsecured debt rating of AXA Financial, Inc. at Baa2.

The outlooks are stable.

AXA announced last May its intention to pursue a minority IPO of its U.S. life business, AXA Equitable Holdings filed its initial S-1 in November of 2017 and the company is targeting conducting the offering in the second quarter of 2018.

“The IFS ratings of AXA Equitable Life Insurance Company and MLOA are based on well-established positions in individual annuity and life insurance, particularly in the individual retirement, life insurance, 403(b) savings and estate planning markets,” Moody’s said in a news release.

“The ratings also reflect AXA Equitable's utilization of diversified distribution channels including a strong captive agency force, as well as its diversified earnings that benefit from economies of scale and solid capital.

“The ratings do not reflect any uplift from AXA as AXA continues to pursue a partial IPO of its US business, and AXA Equitable transitions to operating on a standalone basis,” the agency noted.

© 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.