S&P rates Achmea notes BBB

Standard & Poor’s said it assigned a BBB long-term issue rating to the proposed perpetual junior subordinated notes of Achmea BV.

The rating is based on an understanding that the holders of the notes will be subordinated to Achmea’s senior creditors and have the same seniority as Achmea’s existing subordinated bondholders, S&P said.

Also, the agency said it understands that Achmea has the option of deferring interest where no dividend or other distribution has been irrevocably declared, paid or made on any class of share capital during the six months immediately before the interest payment date.

S&P also said it expects the issuance will not prevent Achmea’s fixed-charge coverage ratio from reaching 4x by year-end 2015, a key assumption underpinning the ratings on the operating companies of the Achmea group.

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