S&P rates China Life notes A-

S&P said it assigned an A- rating to China Life Insurance (Overseas) Co. Ltd.’s planned 10-year U.S. dollar-denominated subordinated notes for up to $2 billion and affirmed the company’s rating A ratings. China Life’s Hong Kong branch will issue the notes.

“The A- issue rating on the proposed U.S.-dollar-denominated notes is one notch below the long-term issuer credit ratings, reflecting the notes' subordination to senior creditors. The starting point for the notching, the issuer credit ratings, reflects our view that China Life Group will provide the necessary support to help the insurer prevent nonpayment risks and avoid reputation contagion risks. We believe the Chinese government's support for China Life Group would extend to the capital instruments issued by China Life Overseas,” S&P said in a press release.

The outlook is stable.

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