Swiss Life's Rating Cut By Fitch Bodes Ill For Peers

Rating agency Fitch on Thursday cut Swiss Life Holding AG's (SLHN.VX) credit grade as concerns increase about the deteriorating business environment and weak financial markets... This, analysts say, could bode poorly for other life insurers that are also struggling with the recession and low interest rates, which can cut deeply into both policy sales and financial returns.

Fitch cut Swiss Life's credit rating to Triple-B from Triple-B-plus and put the outlook on the insurer's rating at negative due to "unfavorable interest-rate movements and the potential for the economic downturn..."

WSJ: Swiss Life's Rating Cut By Fitch Bodes Ill For Peers (Subscription required)