TEXT-S&P says Prudential & units ratings unaffected by Thailand deal
Nov 5 - Standard & Poor's Ratings Services said today that its ratings and outlook on Prudential PLC (A+/Negative/A-1) and its rated operating subsidiaries (AA/Negative) are unaffected by the company's announcement that it will acquire Thanachart Life Assurance Company (Thanchart Life) from Thanachart Bank Public Company Ltd. (Thanachart Bank) for GBP368 million, subject to adjustments at closing.
The announcement also includes the establishment of an exclusive 15-year distribution partnership with Thanachart Bank. This announcement is consistent with the group's strategic focus on growth in Asia and will further diversify its footprint across the region. We expect both the acquisition of Thanachart Life and the exclusive distribution agreement with Thanachart Bank to transform Prudential's current market share in Thailand. We also expect the group to leverage the exclusive distribution agreement as a platform for further growth in Thailand, which is one of its key target markets in South East Asia.