Scottish Equitable downgraded by S&P

Standard and Poor's(S&P) has downgraded pension provider Scottish Equitable and warned on the restructure of parent company Aegon.

S&P downgraded Scottish Equitable from AA- to A+, as earnings suffered under turbulent investment market conditions.

Parent Aegon is currently looking to cut its costs by 25%, aimed at sharpening its focus and improving Aegon's proposition to customers and shareholders.

However, S&P expressed doubts about the benefits of this restructure.

Standard and Poor's says: "The restructuring, in our view, carries execution risk in delivering the material 25% reduction in costs while maintaining the strength of its franchise during a period of significant managerial, strategic, and operational change."