S&P lifts AXA

S&P said it raised AXA SA’s issuer rating to A+ from A and removed it from CreditWatch, where it had placed the rating with positive implications on Feb. 24. The agency also boosted AXA’s junior subordinated notes to BBB+ from BBB, its subordinated bonds to A- from BBB+ and its senior unsecured notes to A+ from A.

“The upgrade follows AXA SA obtaining regulatory and shareholders' approval to transform itself into a reinsurer. Upon the transformation's completion, AXA SA will become an internal reinsurer for part of AXA group's property/casualty (P/C) retail and commercial insurance business written in Europe, with retroactive effect from Jan. 1, 2022, reinforcing its integral role within the group,” the agency said in a press release.

“We believe the transformation into a reinsurance entity will enhance AXA's capital fungibility and cash flow diversity to cover its financial obligations,” S&P said.

The outlook is stable.

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