Standard & Poor has lowered the credit ratings for AMP Life Limited from AA- to A+.
The rating agency also lowered the outlook for AMP Bank Limited from stable to negative.
AMP stated the ratings changes are not material to the operations of AMP Life or any other entity in the AMP Group and AMP remains well capitalised and at 30 June 2018 held a surplus over Minimum Regulatory Requirements of A$1.8 billion.
AMP New Zealand Managing Director, Blair Vernon, said the announcement was not a surprise.
“There’s no material impact on our business and products or services and we remain focused on continuing to support our customers,” he said.
“There’s no material impact on our business and products or services…”
“AMP New Zealand is a strong business and our customers are well protected,” he added, and continued:
“Life insurers operating in New Zealand, including AMP Life Ltd (the insurer for AMP’s wealth protection products in New Zealand), are overseen by the Reserve Bank of New Zealand, and must comply with capital and solvency requirements to ensure we can meet our obligations to policyholders including paying any claims – like the AMP New Zealand customers who in 2017 received $225 million in claims payments.”
S&P gave ‘A’ credit ratings for AMP Bank Limited, AMP Limited and AMP Group Holdings Limited.
It also removed the CreditWatch with negative implications for AMP Limited, AMP Group Holdings Limited and AMP Life Limited, and revised its outlook to negative.
Credit ratings assigned to AMP by other ratings agencies remain unchanged.