S&P Global Ratings has downgraded its rating on AMP Life to A+ from AA-.

The move “reflects a deterioration in the creditworthiness of the entire AMP group as a result of fallout from the [Hayne] royal commission revelations”, the ratings agency says.

“Following our review, we believe the AMP group’s competitiveness has weakened as a result of the damage to its brand and reputation.” 

AMP is hurting after the royal commission revealed senior executives lied to regulators for years and engaged in deceptive practices at the expense of clients.

First-half net profit plunged 74.2% to $115 million as the group set aside about $312 million for advice remediation and related costs. 

S&P’s negative outlook on non-operating holding company AMP and insurance subsidiaries reflects “potential for further rating pressure” related to the group’s capitalisation.

Penalties, fines, legal action or even further remediation pose risks to the group.