&Rating Firm Keeps MetLife On Credit Watch

Standard & Poor’s Ratings Services Inc., New York, will keep MetLife Inc. on credit watch with negative implications, the rating agency says.

The decision follows a review of MetLife’s recent announcement of its planned acquisition of Citigroup Inc.’s Travelers Life & Annuity Co. business.

The ratings were placed on credit watch with negative implications Jan. 31, following MetLife’s announcement of the acquisition.

S&P still has concerns that the proposed financial plan will add intermediate-term stress incrementally on cash coverage of fixed charges.

“In addition to reduced coverage levels, given the scale of the merger, there remains execution risk from both an operational and financing perspective,” says S&P credit analyst Kevin Ahern.