Fitch Ratings has assigned Allianz SE’s (rated ‘AA-‘/Stable) EUR2bn subordinated debt issue a ‘A’ rating.
The subordinated debt has been issued by Allianz Finance II B.V. and is guaranteed on a subordinated basis by Allianz SE. The scheduled maturity date is in 2041, and the first ordinary call date (subject to certain conditions) is in 2021. The coupon has been set at a fixed rate of 5.75% payable annually until the first call date, after which interest is payable quarterly at a variable rate (3m EURIBOR + 3.349%).
The terms of the issue include compulsory interest deferral conditions, with triggers based on regulatory solvency and legal insolvency – in addition, the regulator can prohibit payments.
The notes have been structured with a view to getting Tier 2 regulatory treatment under the proposed Solvency 2 regime. Since the Solvency 2 requirements are not yet known with certainty, the terms of the notes allow for early redemption if the desired regulatory treatment is not achieved. The impact of this issue on both gross leverage and equity-adjusted leverage is minimal.
Source : Fitch Ratings Press Release
