Fitch rates Groupama notes BB+

Fitch Ratings said it assigned a BB+ rating to Groupama SA's €650 million issue of dated subordinated notes.

The notes are rated two notches below Groupama's BBB long-term issuer default rating, comprising one notch for the level of subordination and one for moderate non-performance risk, Fitch said.

The notes are being issued as part of an exchange offer, refinancing in total and in part two outstanding perpetual and dated subordinated debt issuances with call dates in 2017 and 2019, the agency said.

The notes have been issued with a fixed coupon of 6% with a maturity of 10 years.

The issue will rank subordinated to senior creditors, pari passu with senior subordinated securities and senior to any remaining deeply subordinated securities issued by Groupama, Fitch said.

Upon completion of the exchange offer, the total amount of subordinated debt will marginally increase as new debt will be issued, the agency explained.

But Groupama's financial debt leverage remains commensurate with the ratings, Fitch said.

The issue lengthens the maturity profile of the group's financial debt and underlines Groupama's financial flexibility, the agency noted.

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