Fitch rates Just Group notes BBB-

Fitch Ratings said it published Just Group plc's planned issue of perpetual subordinated restricted tier 1 convertible notes' BBB- rating.

The notes are rated four notches below Just Group's issuer default rating, made up of two notches for poor recovery and two notches for moderate non-performance risk, Fitch said.

“The notes will rank ahead of ordinary shares in the event of a winding-up, but behind senior creditors, which are defined as including Solvency II tier 2 and 3 subordinated debt. The level of subordination results in our baseline recovery assumption of 'poor'. We therefore notch down twice from the IDR,” the agency said in a press release.

The proceeds will be used for general corporate purposes and will be issued in the context of a tender offer by Just Group's outstanding RT1 notes.

The outlook is stable.

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