LONDON--(BUSINESS WIRE)--A.M. Best has assigned an issue rating of “a-” to the EUR 500 million fixed to reset rate subordinated notes due 2048 issued on 27 May 2016 by SCOR S.E. (SCOR) (France). The outlook assigned to the rating is positive.
The subordinated notes will pay a fixed annual coupon of 3.625% through to their first call date on 27 May 2028, payable annually in arrears. The coupon will thereafter be reset every 10 years at the prevailing 10-year swap rate plus 3.90% per annum.
The net proceeds of the issue are expected to be used for general corporate purposes. The company maintains its intention to redeem the balance of the EUR 350 million and CHF 650 million undated subordinated notes, subject to market conditions, in July and August 2016 respectively, using the proceeds of subordinated notes issued in 2014 and 2015.
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 (ICR), reflecting the fact that they are subordinated to SCOR’s senior creditors, but senior to any of the company’s deeply subordinated obligations. The positive outlook is in line with the outlook on SCOR’s ICR.
This press release relates to rating(s) that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page.
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