S&P Changes Outlook to Negative for Equitable Group Due to Rising Leverage

S&P Global Ratings has revised its outlook for Equitable Holdings Inc. (EH) from stable to negative due to increased financial leverage. The rating agency affirmed the 'A+' financial strength and issuer credit ratings for EH’s operating companies, as well as the 'A-' issuer credit rating for EH itself.

This revised outlook follows EH's announcement of a reinsurance agreement with Reinsurance Group of America (RGA) for a block of life insurance business, expected to generate over $2 billion in capital. EH plans to primarily use this capital to increase its ownership in Alliance Bernstein through a cash offer, which will raise its leverage above the 40% threshold considered high by S&P Global Ratings. The negative outlook reflects the heightened financial risk associated with this leverage increase over the next 18-24 months.