Fitch lowers Ethias debt to BB-

Fitch Ratings said it lowered Ethias Vie's subordinated debt rating to BB- from BB+ and moved the rating to Ethias SA, which was assigned a BBB- issuer default rating.

The ratings were placed on Rating Watch negative.

The rating actions follow the approval at Ethias group's extraordinary general meeting of the change of the group's structure. Ethias and its subsidiaries are now expected to carry all life insurance activities and almost all non-life insurance activities. The subordinated debt issued by Ethias Vie in December 2005 has been transferred to Ethias with the same terms and conditions.

Fitch expects to resolve the Rating Watch once the last technical aspects of the group's reorganization are confirmed, including the approval of the European Commission antitrust body.

The downgrade of the subordinated debt rating reflects an increase in deferral risk, according to the agency, especially if operating conditions worsen.

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