S&P: Protective Life notes BBB

Standard & Poor's said it assigned a BBB subordinated debt rating to Protective Life Corp.'s issuance of $150 million of notes due in 2042.

The proceeds will be used to redeem its callable hybrid capital securities due 2066.

Because this issuance is simply a replacement of outstanding hybrid securities at more favorable terms, S&P said it still views the notes maturing in 2032, which will not be called, as hybrid securities and give them intermediate equity content treatment.

These notes are rated two notches below the issuer credit rating on Protective, reflecting one notch for optional deferral and one notch for subordination to senior indebtedness, consistent with the hybrid ratings criteria, the agency said.

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