S&P assigns Sogecap notes BBB

Standard & Poor's said it assigned its BBB long-term issue rating to the proposed perpetual subordinated resettable notes issued by France-based Sogecap SA (A/negative/--).

The agency rates the notes three notches below the long-term counterparty credit rating, reflecting its methodology for rating insurance hybrid debt issues.

This incorporates two downward notches, reflecting these instruments' deferral and subordination characteristics. It further incorporates one downward notch to reflect S&P’s view that the implicit government support that it incorporate into the long-term rating on Sogecap would not extend to its hybrid debt.

This approach is in line with the ratings on Societe Generale's hybrid equity instruments, S&P said.

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