Aviva/Pru merger could lead to rating upgrade
Fitch Ratings has today said that any merger between Aviva and Prudential could result in changes to their ratings. This follows from Aviva's announcement of its proposal to acquire Prudential for £17bn. Aviva's all-share proposal has been rejected by the Prudential board despite offering a premium to the current share price. Currently Aviva's Issuer Default Rating ("IDR") is 'A+' and Prudential's IDR is 'AA'.
The rationale for the acquisition relies on combining the geographic strengths of the two companies. Aviva has a very strong position in Europe, while Prudential has very strong positions in USA and
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