Moody's lowers Ardonagh view to stable

Moody's Investors Service said it affirmed Ardonagh Midco 3 plc's B3 corporate family rating and B3-PD probability of default rating.

Moody's also said it changed Ardonagh's outlook to stable from positive.

The outlook revision follows the recently announced planned acquisitions of Swinton and Nevada 3.

The ratings reflect the group's strong business profile and product diversification together with good EBITDA margins and earnings growth prospects, Moody's said.

The ratings also consider the fact that Moody's expects run-rate savings to materialize over the next couple of years and exceptional costs to come down, the agency said.

As this happens, the group will be in a strong position to grow its statutory earnings and start generating organic positive net cash flows, Moody's said.

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