MetLife Inc. plans to divest its 52% stake in Reinsurance Group of America Inc. as both companies say the deal will strengthen each firm's ability to focus on developing and growing its core businesses. But if you ask credit ratings agency Fitch Ratings, the deal won't necessarily be a safe play for RGA.
Continue reading below
Fitch said Monday it placed its A+ rating on RGA on its creditwatch negative list. The placement on creditwatch negative means when the deal closes in September 2008 RGA's ratings probably will be downgraded. Fitch noted it would lower the rating by no more than two notches. As for RGA's A+ current rating, Fitch said the company "benefited from explicit and implicit financial support from Met that will no longer be available."
Additional coverage of the deal will come later in The Daily Deal and on TheDeal.com. - Gerald Magpily
See MetLife press release
See San Antonio Business Journal article
