S&P cuts Swiss Re notes

S&P said it downgraded two Swiss Reinsurance Co. Ltd. senior unsecured notes and one issued by Swiss Re Treasury (US) Corp., and guaranteed by Swiss Reinsurance, to A+ from AA-.

The downgrades reflect changes in Swiss law that take effect on Jan. 1.

“Imminent changes to the Swiss Insurance Supervision Act (ISA) and Swiss Insurance Supervision Ordinance (ISO) mean that senior debt issued by Switzerland-domiciled operating reinsurance companies will now be ranked below policyholders in an insolvency scenario. Previously the senior debt ranked pari passu with policyholders,” S&P said in a press release.

The downgrades do not reflect a change in the view of Swiss Re Ltd.’s creditworthiness, S&P said.

The agency also noted the group’s other ratings, including its subordinated debt ratings, are unchanged.

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