Moody's Investors Service has put the Baa2 senior debt rating, Baa3 subordinated debt rating and P-2 short term rating of Skandia Insurance Company and Skandia Capital AB under review for a possible downgrade.
Moody's said it was concerned about the impact of the prolonged downturn of the equity markets on Skandia.
Managing director Mark Hewlett said: "Skandia's earnings have been significantly affected by the depressed equity market, despite cost-cutting measures to reduce fixed costs.
"The rating agency notes that Skandia's US subsidiary is facing a weakended position in the current deteriorating environment for fee-based asset accumulation operations and has incurred first half 2002 losses."
Moody's will focus on the strategy adopted by the group to face the current adverse environment in the US.
