S&P rates Swiss Life converts

Standard & Poor's said it assigned its BBB- long-term senior unsecured debt rating to the convertible securities to be issued by Swiss Life Holding (BBB-/negative/--), the holding company of Switzerland-based life insurer Swiss Life/Schweizerische Lebensversicherungs- und Rentenanstalt AG (A-/negative/--).

The issue, due in 2010, is expected to raise up to SFR317 million.

"The rating on the issue reflects that the securities constitute direct, unsubordinated, unconditional, and unsecured obligations of Swiss Life Holding," said S&P credit analyst Özcan Dalmis.

The rating on Swiss Life Holding reflects its position as the Swiss Life group's holding company, and the structural subordination of its creditors to the group's operating primary insurance company policyholders, as well as the limited diversification of its income streams.

The securities can be converted into registered shares of Swiss Life Holding at the discretion of the bondholders between June 2004 and May 2010. Swiss Life Holding will use the proceeds of the issue to acquire Italy-based Banca del Gottardo (BBB+/negative/A-2), the group's private banking operation, from Swiss Life.

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