Fitch rates Ethias notes BB+

Fitch Ratings said it assigned a BB+ rating to Ethias SA’s €250 million issue of dated subordinated notes.

The dated subordinated notes are being issued as part of an exchange offer, refinancing outstanding perpetual subordinated debt of the same amount, Fitch said.

The issue matures in 2026 and the securities pay a 5% fixed annual coupon, the agency said.

The notes are subordinated to senior creditors, rank pari passu with existing dated subordinated securities and senior to any remaining subordinated securities issued by Ethias and are mandatorily deferrable if certain solvency conditions are met, Fitch said.

The subordinated debt is rated two notches below Ethias’s long-term issuer default rating of BBB, the agency said.

Fitch said it views the transaction positively from a financial flexibility perspective, as it demonstrates Ethias’s ability to access debt-capital markets.

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