S&P revises RSA Group outlook to negative

Standard & Poor's (S&P) has revised its outlook on the core operating entities of RSA Group to negative from stable while affirming the insurer's A+ credit rating.

The ratings agency said the negative outlook reflected concerns that current low interest rates would put pressure on RSA's capital adequacy and reduce its ability to reinforce it.

However, S&P added that the rating affirmation came in light of RSA's strong competitive position, strong operating performance, as well as strong investments which are expected to alleviate the relative weakness of capital adequacy over the long term.

A negative outlook indicates the rating could, but may not be