Fitch rates AXA notes BBB

Fitch Ratings said it assigned a BBB rating to AXA SA's $1 billion dated subordinated notes.

The notes are rated three notches lower than AXA's issuer default rating of A, comprising two notches for the level of subordination and one for moderate non-performance risk, Fitch explained.

The notes were issued by AXA under its €17 billion euro medium-term note program.

The proceeds will be used mainly to pre-finance some outstanding debt, the agency said.

The notes were issued with a fixed coupon of 5 1/8% with a maturity of 30 years, but are callable after 10 years, Fitch said.

The issue will rank pari passu with AXA's other dated subordinated notes, junior to unsecured unsubordinated obligations and senior to any undated subordinated notes or obligations, the agency noted.

Fitch said it believes this issue is neutral to AXA's financial debt leverage, fixed-charge coverage and capital adequacy as the new notes have been issued mainly for refinancing purposes.

The issue also will lengthen the maturity profile of the group's financial debt and exemplifies AXA's strong financial flexibility, the agency added.

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