Moody’s assigns Generali notes Baa3

Moody's Investors Service said it assigned a Baa3(hyb) rating to the €500 million of fixed-rate senior dated subordinated tier 2 notes due 2032 to be issued by Assicurazioni Generali SpA under its €15 billion medium-term note program.

“The Baa3(hyb) rating reflects Moody's Baa2 senior unsecured debt rating of Generali and Moody's standard notching practices for such instruments. The notching reflects (i) the subordination of the notes, (ii) the mandatory (based on breach of regulatory capital requirements) coupon skip mechanism and (iii) the cumulative nature of deferred coupons, in case of deferral,” the agency said in a press release.

“The issuance is not linked to any buyback or redemption of outstanding debt at this stage, but given Generali's current approach to debt optimization, we do not expect any material long-term effect on the group's leverage or earnings coverage as a result of the issuance,” Moody’s said.

The outlook is stable.

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