Investment management firm Challenger (ASX:CGF) has announced it has received a BBB+ Standard & Poor’s (S&P) rating and Challenger Life Company has received an A rating.
The results are a revised outlook from stable to positive for the company.
The financial services company said the revised outlook reflects its expanded distribution network and leadership in the Australian annuities market, which is expected to strengthen its underlying operating earnings.
The annual ratings review, which rates how likely a company will repay debt, shows the general credit score of the company has improved.
Challenger recently announced it is undertaking a process to replace Challenger Life Company’s Tier 2 subordinated debt with a new debt issue, which it is expected to repay its existing $400 million debt at the end of November.
Shares in Challenger (ASX:CGF) closed 1.32 per cent higher to $13.84.