Ratings agency Moody's has changed its rating outlook for AXA group to negative from stable.
Announcing the move, Moody's said the outlook change reflected the group's diminished financial flexibility. The agency added that the decline in capital gains, driven by depressed equity markets has affected the group's solvency.
The rating agency also said that it was maintaining a stable rating outlook on the insurance financial strength ratings of the group's core AXA UK units. It added this move reflected their leading positions in their respective markets and good solvency levels.
A Moody's spokesman said: "However, Moody's believes that if the environmental pressures persist, the effect of the group's diminished earnings and capital formation will first heighten the credit risk for creditors of the holding company more than policyholders of the operating company, thus implying that the notching between the group's insurance financial strength ratings and its holding company debt ratings may widen."
