Moody’s downgrades Old Mutual

American agency Moody’s has downgraded the financial soundness rating of Old Mutual Life Assurance (South Africa) from A1 down to A3 with negative outlooks. In the same way, Old Mutual debt rating has been equally downgraded from Baa1 down to Baa2 with negative outlooks. Old Mutual remains, nonetheless, one of the best rated institutions in South Africa. Moody’s reacted following credit quality deterioration in the country whose governmental obligations went downgraded from A3 to Baa1 in late September. The agency deemed that the insurer’s situation is linked to the country’s economic activity mainly through its local investments and through its underwriting targeting the South African market. The ratings of Skandia Life, where Old Mutual is the major shareholder, have been spared.