Moody’s gives Ba3 to Momentum notes

Moody's Investors Service said it assigned Ba3(hyb) global scale and Aa3.za(hyb) national scale ratings to the backed subordinated notes due 2029 to be issued in two tranches by Momentum Metropolitan Life Ltd. (MML) under its ZAR 10 billion backed unsecured subordinated note program.

The notes are intended to qualify as tier 2 capital.

“The notes are guaranteed by the group holding company, Momentum Metropolitan Holdings Ltd. (MMH). While this guarantee is a regulatory requirement for tier 2 capital notes issued by an operating entity to be considered capital for group solvency capital requirements, Moody's does not consider the guarantee to provide credit enhancement to the notes. This is because the guarantor, MMH, is structurally subordinated to the issuer, MML, and the guarantor's credit profile is dependent on the cash flows generated at MML,” the agency said in a press release.

MML will use the proceeds to refinance ZAR 750 million of its subordinated debt, which is being redeemed this month.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.