S&P gives Ageas notes A-

S&P said it gave its A- issue rating to the subordinated notes Ageas SA/NV intends to issue. The notes will have a 31-year maturity and will be callable after 10.5 years.

The rating is two notches below Ageas’ long-term issuer credit rating because the agency deducts

one notch to reflect the notes’ subordination to the company’s senior obligations and another to reflect the payment risk created by the mandatory and optional coupon deferral features.

Proceeds are expected to be used for general corporate purposes and to strengthen the group’s regulatory solvency.

“We do not expect Ageas’ financial leverage or fixed-charge coverage ratios to change materially following this issuance,” the agency said in a press release.

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