AMP took its second blow for 2003 last week when its shares tumbled to a record low of $7.90 as result of the Standard & Poor’s downgrading of their credit rating. Despite the company’s troubled AMP’s Australian operation, AMP Life has retained a relatively strong position. But is this the way it will stay?

JP Morgan analyst Shane Fitzgerald said AMP in Australia is throwing off excess capital, “and I can’t see much changing in the near future”.

“Australia really doesn’t have the problems that the UK does,” he said. “The only way I can see things going wrong for them is if the UK gets into even more trouble and Australia gets pulled in to come to their rescue – but [the Australian Prudential Regulation Authority] wouldn’t let that happen.”

The once-inviolate Australian can’t seem to take a trick at present. AMP was also mentioned in the recent Australian Securities and Investments Commission/Australian Consumers Association survey, which rated their financial planners as “very low” in standard.

Four of AMP’s businesses have been downgraded, including Pearl Assurance, NPI Ltd, AMP Group Holdings and AMP Bank. The financial industry is keenly awaiting the release of AMP’s full-year results on February 26 to assess the damage more closely. The company is expected to announce a $900 million full-year net loss.