Standard & Poor's has placed the A+ ratings of Irish Life & Permanent's US businesses on CreditWatch, following the announcement that the company is to conduct a strategic review of its North American interests.
The business units of Irish Life of North America that have been placed on CreditWatch are Inter-State Assurance and First Variable Life. Currently, the A+ ratings of the two units are based on guarantees furnished by the parent company, Irish Life. However, S&P say that if the ratings were based on their stand alone characteristics, both companies would be rated significantly lower.
Irish Life initiated the strategic review due to the continued poor performance of ILoNA. According to S&P, if both companies continue to be owned by Irish Life at the end of the review, then the current ratings would remain effective.
In the event of a sale, S&P say that the companies ratings would either be raised or lowered accordingly, depending on the strength of the new owner and the level of support it would offer them.
The rating of Irish Life & Permanent is unaffected by S&P's rating action.
By Geoffrey Ho
The Howden Group Pension Plan has completed a full pensioner buy-in with Legal & General (L&G), insuring benefits for around 2,000 members.
Professional Pensions is looking to update its list of pensions master trusts in the UK ahead of authorisation. Can you help?
Concern about the potential impact on employer covenants has been rated the top risk for defined benefit (DB) schemes, according to a PTL survey.
Jonathan Stapleton says the DWP's progress on CDC is a welcome, and cautious, step forward.