Rating agency Standard & Poor's has revised its outlook on
the main operating entities of Royal & SunAlliance (R&SA) to stable from negative.
The outlook revision reflects S&P's confidence that R&SA's management will continue to execute its strategy successfully. The stable outlook also factors in R&SA's stronger capitalisation and improved underlying earnings.
The ratings on R&SA reflect the group's strong competitive position, strong capitalisation, and strong operating performance. These positive factors are partially offset by the group's financial flexibility (defined as the ability to source capital relative to capital requirements), which is considered good.
A spokeswoman for R&SA said: "This is excellent news for Royal & SunAlliance, and affirms the actions that management have taken over the last 18 months to strengthen the group."
