S&P ups Standard Life Aberdeen notes

S&P said it raised its issue rating on Standard Life Aberdeen plc’s $750 million subordinated note to BBB+ from BBB.

On Oct. 24, Standard Life Aberdeen (A-/stable/--) announced proposed changes to its $750 million subordinated note due 2048 (ISIN: XS1698906259) that will improve the terms for creditors. On Nov. 15, investors agreed to amend the note's terms and conditions, and S&P has upgraded the $750 million notes by one notch to BBB+. The issuer credit rating on SLAB itself is unchanged.

Effective Nov. 15, SLAB has converted the subordinated and deferrable debt into a Capital Requirements Directive IV-compliant tier 2 instrument. The amendments convert the note into a bullet maturing in 2028 (the current first call date) and remove certain features, including the mandatory and optional deferral features. The 4.25% coupon rate does not change.

“In our view, removing both the mandatory and optional deferral features improves the terms for creditors,” S&P said in a news release.

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