S&P gives BBB- to Achmea subordinated notes

S&P said it assigned its BBB- issue rating to Achmea BV's (BBB+/stable/--) proposed deferrable subordinated and dated notes.

In accordance with S&P’s methodology for subordinated debt issues, S&P rates the proposed long-term fixed-to-reset dated tier 2 notes two notches below the BBB+ long-term issuer credit rating on Achmea.

The notes are scheduled to mature in November 2044, 20.5 years after the issue. S&P said it understands that the instruments are callable at the first call date in May 2034 (six-month par call). The first interest reset date is 10.5 years after the issue date or on any interest payment date after the first call date, subject to the repayment conditions and including approval from the insurance regulator.

“We assume Achmea will use the proceeds for general corporate purposes, which may include the refinancing of outstanding debt,” S&P said in a news release.

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