Moody’s assigns Aviva notes A3

Moody’s Investors Service said it assigned an A3(hyb) rating to the C$450 million subordinated tier 2 fixed-rate notes due in 2030 issued by Aviva plc.

“The A3(hyb) rating reflects Moody’s standard notching practice for such instruments. The notching reflects (i) the subordination of the notes (ii) the optional and mandatory (based on breach of regulatory capital requirements) coupon skip mechanisms and (iii) the cumulative nature of deferred coupons, in case of deferral,” Moody’s said in a press release.

The issuance will not affect the agency’s view of Aviva’s adjusted financial leverage because the small increase in leverage resulting from the issuance of these notes will be offset by the maturity of the group’s Canadian dollar-denominated notes due in 2021, Moody’s said.

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