LONDON--(BUSINESS WIRE)--A.M. Best has assigned an issue rating of “a-” to the EUR 600 million fixed to reset rate subordinated notes due 2046 issued on 7 December 2015 by SCOR S.E. (SCOR) (France). The assigned outlook is positive.
The subordinated notes will pay a fixed annual coupon of 3.00% per annum through to their first call date on 8 June 2026, payable annually in arrear. The coupon will thereafter be reset every 10 years at the prevailing 10-year swap rate plus 3.25% per annum.
The net proceeds of the issue are expected to be used to refinance the CHF 650 million 5.375% fixed to floating rate undated subordinated notes callable in August 2016, subject to market conditions and regulatory approval, and for general corporate purposes.
SCOR’s financial ratios are expected to remain within tolerance for its rating, and A.M. Best will continue to monitor the company’s interest coverage and leverage ratios.
The subordinated notes’ rating is two notches down from SCOR’s issuer credit rating, reflecting the fact that they are subordinated to Scor’s senior creditors, but senior to any of the company’s deeply subordinated obligations.
In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best Europe - Rating Services Limited Supplementary Disclosure.
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