British financial services company Legal & General has found itself slipping down the FTSE as Standard & Poor’s revised its outlook on the firm from stable to negative.
The credit rating agency said L&G’s fast growth in investments and bulk annuities is weighing on the insurer’s ability to maintain capital adequacy at S&P’s AA level, according to a report by
The Times of India.
The cut from stable to negative outlook applies not only to Legal & General Group Plc but to its subsidiaries as well. The report said the group’s ‘A’ long-term and ‘A-1’ short-term counterparty ratings have been maintained.
L&G’s dividend growth rate “appears under risk,” according to analysts from Keefe, Bruyette & Woods. In a retreat from 18-month highs, L&G shares dropped 1.8%.
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