Aviva hit by ratings downgrade

The one notch downgrade followed a ratings review initiated in March and according to the agency was driven by its view that despite making good progress on its transformation objectives, Aviva's near-term profitability was likely to remain suppressed.

The analysts added that this limited the group's ability to improve profitability levels and earnings coverage in line with its expectations for an Aa rated insurer.

Moody's also warned that Aviva's focus on improving margins and capital