Aegon: Moody's places ratings under review
(CercleFinance.com) - On Monday evening Moody's announced that it is placing its credit ratings on Aegon under review with a potential downgrade ahead, following the group's announcement of an agreement to merge its Dutch operations with ASR to create a leading Dutch insurance player.
For the record, Aegon will receive cash proceeds of 2.5 billion euros and a 29.99% stake in the combined entity. The proceeds will be partly returned to shareholders and partly used to reduce debt.
The agency points to a change in the credit profile resulting from the potential change in the regulatory regime that will apply to the group and the reduced diversification of its cash flows in the context of weakening economic conditions.
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