S&P rates Storebrand notes BBB+

Standard & Poor's said it assigned the BBB+ long-term debt rating to the proposed upper tier 2 notes that Storebrand Livsforsikring AS (A/negative) plans to issue to raise €300 million.

The two-notch gap with the counterparty credit rating reflects the notes' equity-like characteristics, including their interest deferral features, deep subordination of bondholders to policyholders and senior creditors, and their perpetual tenor, according to the agency.

Proceeds will be used to refinance Storebrand Liv's existing €186 million floating-rate callable subordinated debt and to partially finance the acquisition SPP Livforsakring AB.

Ratings reflect the company's robust earnings performance, strong competitive position and active investment management, the agency said.

Ratings are constrained, however, by the execution and integration risks arising from the acquisition of SPP Livforsakring, and from execution and competitive risks associated with the changing Norwegian regulations, the agency said.

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