Formerly in possession of S&P’s highest rating for financial strength, MassMutual Financial Group was demoted August 26th, 2009 to AA+, S&P’s second-highest rating. MassMutual is a major provider for life insurance and other financial products, one of several industry providers to have suffered ratings downgrade in recent months. S&P attributed MassMutual’s demotion to 1) its high proportion of illiquid capital, 2) high leveraging of its capital, and 3) broad downturn across the economy, all of which undermines MassMutual’s flexibility.
S&P is but one of ten Nationally Recognized Statistical Rating Organizations, and MassMutual’s status remains unchanged in the other nine NRSRO’s’ ratings. However, it already occupies a place in Moody’s second-tier, and Moody’s has furthermore slated the group to be reviewed for yet further downgrade. Nevertheless, A. M. Best and Fitch both award MassMutual their highest rank.
MassMutual still ranks among the highest institutions of the industry, though top competitors New York Life and Northwestern Mutual retain S&P’s attractive AAA rank.
