Fitch rates Ethias notes BB

Fitch Ratings said it assigned an expected BB rating to Ethias SA’s proposed issue of dated subordinated notes.

Fitch also said it downgraded the company’s insurer financial strength rating to BBB from BBB+ and long-term issuer default rating to BBB- from BBB.

The outlook is stable.

Fitch also said it downgraded the company’s existing subordinated debt to BB from BB+ in line with the one-notch downgrade of the issuer default rating.

The downgrades reflect the expected increase in financial leverage ratio, the agency said.

Partially offsetting the increase in leverage, Fitch said it expects capital adequacy to improve as the new debt is treated as 100% capital for this purpose.

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