S&P rates Mondiale notes BBB

S&P said it assigned a BBB issue rating to La Mondiale’s subordinated tier 3 notes.

S&P said it rates the notes two notches below the long-term issuer credit rating on La Mondiale. The rating reflects a notch for subordination to La Mondiale’s senior creditors and another for the payment risk created by the mandatory coupon deferral in the event of a breach of the minimum capital requirement (MCR) under Solvency II.

“In our view, one notch sufficiently reflects the payment risk on these notes. This is in part because the solvency capital requirement (SCR) coverage level has been and will likely stay strong, with limited sensitivity or volatility,” the agency said in a press release.

Mondiale is expected to use the proceeds for general corporate proceeds.

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