AMP has received a blow with the news that Moody's has downgraded its financial strength ratings.
The ratings agency downgraded its ratings of AMP Group to Aa3 from Aa2. The agency added that stable outlooks apply to the company's ratings.
Moody's analysts suggested that the downgrade is a reflection of the sustained equity market falls suffered by AMP in the last 18 months.
The agency also highlighted the effect of capital weaknesses on the deterioration of the Group's financial profile.
A Moody's statement said: "The ratings downgrades reflect the impact on the Group of weakening financial profiles at the Group's UK insurance operations.
"Whilst the Group has acted to support the capital position of its UK subsidiaries, in Moody's opinion this has the effect of reducing the overall credit quality of the Group."
