Standard & Poor’s Ratings Services said that the ratings on the U.K.-based Aviva Group (core operating entities rated AA-/Stable) are unchanged by its agreed sale of breakdown recovery firm RAC to The Carlyle Group for £1 billion [$1.597 billion]
S&P noted that the sale should be completed at the end of the third quarter of 2011. “It is in line with our expectation that the group will continue to improve its capital adequacy and capital quality, and has only minor negative implications for its coverage ratio,” S&P said.
“The sale proceeds will further strengthen the group’s liquidity, supporting its intention to reduce hybrid debt by at least £700 million [$1.118 billion] over the next three years.”
Source: Standard & Poor’s
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