S&P Lowers Fidelity's Debt Outlook

Standard and Poors reports that Fidelity Investments Life Insurance Co. and Empire Fidelity Investments Life Insurance Co. (collectively, Fidelity Investments Life Insurance Group, or FILIG) debt outlook has been lowered (click on "Fidelity Investments Life Insurance Co. And Affiliate Outlook Revised To Neg From Stable"). This has an impact on FMR, the parent company that runs Fidelity. Here's the reason for the downgrade:

The negative outlook on FMR is principally due to the loss of market share caused by the underperformance in domestic equities, as well as the higher risk profile stemming from the investments in noncore businesses. If FMR fund performance backslides or if higher risk/lower margin noncore businesses, such as Pro-Build, were to exert significant pressure on FMR's financial performance, ratings could be lowered. Alternatively, if last year's restructuring of the asset management business proves a success in more challenging equity markets, or the operations, sale, or other disposition of these noncore businesses enhance FMR's financial position, the outlook could be revised to stable.

Fidelity Observer doesn't have any other analysis relating to the S&P report, although Chris Reidy over at the Boston Globe was able to dig up a few quotes from Fidelity's PR ace, Anne Crowley.