Fitch rates Rothesay program BBB+

Fitch Ratings said it assigned Rothesay Life plc's (A, stable) £3 billion euro medium-term note program's subordinated tier 2 and tier 3 debt classes BBB+ ratings.

Under the program, Rothesay can issue dated and undated subordinated notes with terms capable of qualifying as tier 2 and tier 3 capital. The instruments can be issued in any currency and the proceeds from the program will be used for general corporate purposes.

Fitch noted that the ratings are assigned to the program and not to the notes issued under the program.

“The tier 2 and tier 3 notes issued under the EMTN programme will rank ahead of ordinary shares and solvency ii restricted tier 1 subordinated debt in the event of a winding-up, but behind senior creditors,” the agency said in a news release.

“The level of subordination results in our baseline recovery assumption of below average for the notes issued by the operating company, Rothesay Life plc.”

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