Fitch cuts Momentum outlook to negative

Fitch Ratings said it has changed the outlooks on Momentum Group Ltd.'s national insurer financial strength and national long-term ratings to negative from stable.

This reflects concern over potential deterioration in Momentum's capitalization and further weakening in earnings due to volatility in equity markets as well as challenging consumer conditions, the agency said.

Fitch noted that the ratings have been affirmed at insurer financial strength AA+(zaf) and national long-term AA(zaf). Its subordinated debt was affirmed at AA-(zaf).

The ratings reflect Momentum's well-established and strong business position in South Africa in its chosen target market, the strength and diversity of its distribution network and its strong affiliation with FirstRand Bank Ltd (national long-term rating of AA(zaf)), Fitch said.

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