S&P rates Hannover Re bonds A

Standard & Poor's said it assigned an A long-term debt rating to the proposed euro perpetual junior subordinated callable fixed-to-floating bonds to be issued by Hannover Rueck SE (AA-/stable/--).

The issue rating incorporates the agency’s methodology for junior subordinated debt issues and it therefore rated the bonds two notches below Hannover Re’s long-term counterparty credit rating.

S&P said the rating is based on its understanding that the bonds will be subordinated to the issuer's senior bonds and dated subordinated bonds.

It also reflects the agency’s assumption that interest deferral can occur at the option of Hannover Re if, during the previous six-month period, the company: Declared no dividend or other distribution, and made no other distribution or payment in respect of any class of shares; made no payment on account of the balance sheet profit since the most recent ordinary general shareholders' meeting; and repurchased none of its shares for cash.

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