Fitch: Scottish Widows on watch

Fitch Ratings said it placed Scottish Widows Ltd.'s AA- insurer financial strength rating and A+ long-term issuer default rating on Rating Watch negative.

The negative watch follows a similar rating action on Lloyds Banking Group, Fitch explained.

Scottish Widows' ratings are aligned with Lloyds' ratings to reflect the importance and integration of its operations and management with those of Lloyds, the agency said.

The watch on Lloyds reflects heightened uncertainty over the ultimate outcome of the Brexit process and an increased risk that a disruptive "no-deal" Brexit on U.K. banks, Fitch said.

Scottish Widows' ratings also reflect its limited geographical diversification, but also its product diversification not just within its life, pensions and investment businesses, but also through a sizeable non-life insurance business, the agency 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.