S&P gives Mondiale notes BBB

S&P said it assigned a BBB long-term issue rating to the proposed subordinated notes to be issued by La Mondiale (A-/stable/--).

The agency said it believes the proposed debt issue is fungible within the parent group, since La Mondiale is linked with AG2R Reunica Prevoyance (A-/stable/--) through a solidarity mechanism.

The rating is two notches below the issuer credit rating on La Mondiale, reflecting the agency’s standard notching for insurers' junior subordinated debt issues.

“We have analyzed and rated the proposed debt issue on the understanding that the noteholders will be subordinate to senior creditors,” S&P said in a news release.

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