Moody’s applies Baa1 (hyb) to SCOR notes

Moody's Investors Service said it assigned a Baa1 (hyb) rating to the $625 million perpetual restricted Tier 1 notes issued by SCOR SE (Aa3 insurance financial strength rating, stable outlook).

The notes will be partially or fully written down if the group's solvency ratio breaches certain triggers.

“The Baa1 (hyb) rating of the notes reflect their deeply subordinated status (the notes rank junior to all SCOR's existing debt), the risk of coupon cancellation on a non-cumulative basis (coupons can be cancelled at any time at the issuer option and are mandatorily cancelled if the group's solvency ratio falls below 100% or in case of regulatory intervention) and the risk of principal write-down under certain circumstances,” Moody’s said in a news release.

“The notes will be fully written down if SCOR's own funds fall below 75% of the group's solvency capital requirements (SCR) or below the group's minimum capital requirements (MCR).

“The notes will also be partially written down if SCOR's own funds fall between 100% and 75% of the group's SCR for more than three months, as prescribed by the regulation.”

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