Fitch hikes AXA

Fitch Ratings said it hiked AXA SA's and XL Group Ltd.’s long-term debt ratings by two notches to A+ from A- and the companies’ long-term issuer default ratings to A+ from A and removed them from rating watch positive.

Fitch also upgraded the subordinated debt one notch below the issuer rating at A and the solvency 2 tier 2 and other hybrids at A-, two notches below the issuer rating.

The upgrades follow AXA SA's obtainment of a reinsurance license from French supervisor ACPR, Fitch said. Shareholders had previously approved on April 28 the planned transformation of AXA SA into the internal reinsurer of the group, while remaining the holding company.

“Following the transformation, we now view AXA SA as a regulated operating insurance company and consequently we have upgraded AXA SA's and XL Group Ltd's IDRs by one notch to reflect this new status,” Fitch said in a press release.

The higher senior unsecured rating reflects more favorable recovery assumptions, the agency said.

The outlook is positive.

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