S&P rates Swiss Life convertibles BBB

Standard & Poor's said it assigned a BBB long-term issue rating to the proposed Swiss franc domestic market senior unsecured convertible bonds to be issued by Swiss Life Holding AG.

The rating is based on an understanding that the holders of the bonds will rank pari passu with other senior creditors of Swiss Life Holding, S&P said.

The convertible bonds provide investors with the right to, but not the obligation to, exchange them for a fixed number of Swiss Life Holding's registered shares at a set price over the term of the bonds, subject to conversion-rate clauses to reflect changes in the share's intrinsic value, the agency said.

S&P said it recognizes that Swiss Life's capital could benefit should investors choose to exercise their right to convert.

The proceeds will be used to build liquidity at the holding company for general corporate purposes, the agency said.

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