Fitch rates Generali notes BBB

Fitch Ratings said it assigned an expected rating of BBB to Assicurazioni Generali SpA's upcoming issue of €1 billion senior dated subordinated notes.

The notes will be issued by Generali under a €10 billion euro medium-term note program renewed in April 2014.

The proceeds will be used to refinance a €500 million subordinated loan from Mediobanca Spa repaid April 7 and €500 million senior notes due May 6, 2015.

The senior dated subordinated notes have a contractual maturity of 12 years. The notes will be eligible for regulatory treatment of the required solvency margin and will be grandfathered as tier 2 capital under solvency 2, the agency said.

The notes are rated one notch below the company's issuer default rating of BBB+, reflecting below-average recovery prospects, Fitch said.

This issue is viewed as neutral for the company's financial leverage and marginally positive for its capital adequacy as the new notes are refinancing debt of similar equity treatment, the agency said.

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