S&P rates If P&C notes BBB

S&P said it assigned an A- long-term counterparty credit rating to If P&C Insurance Holding Ltd.

The agency also said it assigned a BBB long-term issue rating to the proposed Swedish krona-denominated subordinated callable notes due in 2046 to be issued by If P&C.

The outlook is stable.

If P&C is the non-operating holding company of If P&C Insurance Ltd. and If P&C Insurance Co. Ltd., which is collectively known as the If P&C Insurance group, S&P noted.

The ratings on If P&C are two notches below the ratings on these core entities, reflecting a view of the ongoing subordination of If P&C's creditors, the agency explained.

Sampo plc is the ultimate parent of If P&C, S&P added.

According to S&P’s hybrid capital criteria, the rating on the proposed notes is two notches less than the A- long-term issuer credit rating on If P&C to reflect the notes' subordination and interest deferral features, the agency said.

The rating on the notes also reflects an understanding that the notes will be subordinated to senior creditors and the interest can choose to defer interest as long as it has not declared or made a dividend or payment on more junior and parity obligations in the previous six months, S&P said.

The proposed notes are expected to be eligible as tier 2 capital and they are classified as having intermediate equity content, the agency said.

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