Fitch rates Asahi Mutual bonds BB-

Fitch Ratings said it assigned an expected BB- rating to Asahi Mutual Life Insurance Co.'s proposed dollar-denominated step-up callable cumulative perpetual subordinated bonds with interest deferral options.

The agency also said it simultaneously published Asahi Life's long-term issuer default rating at BB with stable outlook.

The proceeds will be used for general corporate purposes, Fitch said.

The total issuance amount and coupon of the subordinated bonds are not yet decided, the agency said, but the issue is expected to be callable after five years.

The subordinated bonds are rated one notch lower than Asahi Life's long-term issuer default rating, reflecting a “below average” expected recovery, Fitch said.

The agency also said it expects Asahi Life's financial leverage and interest coverage to remain adequate after this issue.

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