Credit rating agency Standard & Poor’s (S&P) has upgraded the long-term financial strength and issuer credit ratings of IAG’s core entities from ‘AA-’ to ‘AA’.
S&P also raised the long-term issuer credit rating of IAG from ‘A’ to ‘A+’. The outlook for these ratings is deemed stable.
In a statement, IAG managing director and CEO Nick Hawkins said S&P’s decision to boost IAG’s credit ratings aligns with the application of its revised risk-based capital criteria and acknowledges various contributing factors, including the group’s robust capital buffers and reinforced reinsurance cover.
“This positive outcome reflects IAG’s prudent approach to capital, balance sheet management and diverse reinsurance structures,” he said.
Simultaneously, IAG successfully concluded its on-market share buyback, totalling $350 million, as initially disclosed in October 2022. The Common Equity Tier 1 ratio, a pivotal capital metric, will be maintained within the targeted benchmark range of 0.9 to 1.1 times. Any surplus in this ratio will be strategically employed to provide additional flexibility for future capital management initiatives.
In other news, IAG recently appointed an executive manager for customer relations, regulatory, and transformation – a newly created role.
