Moody’s Investors Service has announced the U.S. Financial Stability Oversight Council’s designation of several life insurers as non-bank systematically financial institutions to be “credit positive” for these companies.
Moody’s, New York, disclosed its stamp of approval on the SIFI designations in a June 6 release of “Credit Outlook”, a round-up of credit implications of current events, including transactions involving corporations, infrastructure developments, banks, insurers and sovereigns.
Last Monday, the U.S. FSOC named Prudential Financial, Inc. (Baa2 positive under Moody’s credit scoring system), American International Group, Inc. (AIG, Baa1 stable), and General Electric Capital Corporation (GECC, A1 stable) as non-bank SIFIs.
“Designation as a non-bank SIFI is credit positive for these issuers,” the report states. “Non-bank SIFIs will fall under the jurisdiction of the Federal Reserve System, which will provide regulatory oversight in addition to the current state insurance regulatory framework for the insurers.