Prudential Cut At Morgan Stanley, Cash Flow Issues Cited

By Aude Lagorce
MarketWatch
April 21, 2009


LONDON (MarketWatch) -- Morgan Stanley cut its rating on British insurer Prudential Plc (uk:pru) to underweight from equal-weight, saying it believes the market is underestimating the risks attached to the group's cash flow and that the shares are reasonably expensive on a relative basis. The broker told clients it thinks Prudential is unlikely to be able to extract a dividend from Jackson National Life in 2009 and possibly 2010, which would mean a holding company cash outflow. Morgan Stanley prefers rival Axa (fr:cs) .
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