S&P rates Swiss Re notes BBB+

Standard & Poor’s said it assigned a BBB+ long-term issue rating to Swiss Re Ltd.’s proposed subordinated fixed-rate callable loan notes, which are scheduled to mature in 2056.

The company plans to issue through a pre-funded note issuance facility, S&P said.

The BBB+ issue rating on these loan notes is two notches below the A counterparty credit rating on Swiss Re, reflecting the standard notching for deferrable subordinated debt issues, the agency said.

S&P said it analyzed and rated the proposed debt issue on the understanding that, when issued, the loan notes will be subordinated to debt held by senior creditors and that interest will be deferrable.

As with other subordinated loan notes issued by Swiss Re in the past, a special-purpose vehicle is established and will issue notes secured on the subordinated loan notes, the agency explained.

The facility is viewed as having minimal equity content for the Swiss Re group from the time of establishment, at least until drawdown, because the funds are held off the balance sheet, S&P said.

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