Moody’s assigns Baa2 to Coface notes

Moody's Investors Service said it gave a Baa2(hyb) rating to the tier 2 ordinary subordinated obligations due in 2032 to be issued by Coface SA.

“The Baa2(hyb) rating is in line with Moody's standard notching practices for this type of instrument issued by holding companies in the European Union where group regulation is in effect. The debt is intended to qualify as tier 2 capital under Solvency II,” the agency said in a press release.

The rating reflects the subordination, the mandatory coupon deferral mechanism in case of breach of regulatory capital requirements, and the cumulative nature of deferred coupons, in case of deferral.

The proceeds are expected to be used for general financing purposes.

The outlook is stable.

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