S&P assigns Achmea notes BBB-, BB+

S&P said it assigned Achmea BV’s junior subordinated notes a BBB- rating and a BB+ rating to the company’s perpetual subordinated notes.

S&P said it plans to classify both series of notes as having intermediate equity content.

The perpetual notes will be eligible as restricted tier 1 capital under E.U. solvency regulations.

“The payment risk is in line with other hybrid instruments, because we believe the Achmea group’s solvency capital requirement (SCR) coverage compares favorably with that of other insurance companies – we expect that it will remain above 190% over the next two years,” said S&P in a news release.

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