S&P provides Nippon Life bonds A-

Standard & Poor's said it assigned its A- issue rating to Nippon Life Insurance Co.'s (A+/stable) dollar-denominated subordinated bonds with interest deferral features.

The total issuance amount and the coupon have yet to be decided but the coupon will be fixed-rate and it will be reset in October 2024 and every five years thereafter.

The issue rating on the subordinated bonds is two notches lower than the long-term counterparty credit rating on Nippon Life, the agency said. The gap reflects subordination to senior creditors, as well as the issuer's ability to defer interest payments.

S&P said the ratings reflect its assessments of Nippon Life’s business risk profile as very strong and its financial risk profile as moderately strong. The agency thinks the issuance of the subordinated bonds will have no impact on the ratings on Nippon Life, although it has a positive effect on the insurer's capital base.

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