Fitch rates Generali notes BBB-

Fitch Ratings said it assigned Assicurazioni Generali SpA's (Generali) issue of €1.5 billion perpetual fixed/floating deeply subordinated notes a BBB- rating.

The notes were issued by Generali Finance BV under a €12 billion euro medium-term note program renewed on Sept. 30 and are guaranteed by Generali.

Proceeds were used to finance the buyback offer of three series of perpetual fixed/floating notes with first call dates in 2016 and 2017 issued by Generali Finance and guaranteed by Generali (€1,275,000 5.317% notes, call date June 16, 2016; £700 million 6.214% notes, call date June 16, 2016; and €1.25 million 5.479% notes, call date Feb. 8, 2017).

The deeply subordinated perpetual notes have a first call date in 2025. There will be a fixed annual coupon of 4.596% until the reset date and three months Euribor plus 450 basis points thereafter.

Fitch said the notes are rated two notches below Generali's issuer default rating of BBB+, reflecting below-average recovery prospects and material loss absorption features, in line with Fitch's criteria.

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