Fitch rates Ageas Capital notes A-

Fitch Ratings said it assigned an expected A- rating to Ageas Capital (Asia) Ltd.'s proposed issue of senior unsecured dollar-denominated notes due 2023.

Fitch also said it affirmed Ageas Insurance Co. (Asia) Ltd.'s long-term issuer default rating at A- with stable outlook,

The notes will be fully and unconditionally guaranteed by Ageas Insurance. The notes are rated at the same level as the issuer default rating to reflect average recovery prospects of senior debt held at an operating company, Fitch said.

The proceeds will be used to refinance Ageas Capital (Asia) Ltd.'s $100 million outstanding senior debt due 2014 and for general corporate purposes. Fitch said it believes this will strengthen the group's capital adequacy positions.

The ratings reflect the increasing strategic importance of Ageas Insurance within the group and its moderate market position, the agency said.

Its statutory solvency position is sensitive to changes in interest rates due to an asset and liability mismatch, although the company is taking measures to reduce the gap, Fitch said.

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