Moody’s assigns Aviva notes Baa2

Moody's Investors Service said it assigned a Baa2(hyb) rating to Aviva plc’s planned fixed-rate reset perpetual restricted tier 1 contingent convertible notes.

“The ‘high trigger’ contingent capital securities will convert into ordinary shares if the Group's Solvency II coverage ratio breaches certain triggers. The Baa2(hyb) rating of the notes reflects their deeply subordinated status, the risk of coupon cancellation on a noncumulative basis, and the risk of principal conversion to equity in the event of a trigger being breached,” the agency said in a press release.

Aviva will use the proceeds for general corporate purposes.

The outlook is stable.

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