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FOR IMMEDIATE RELEASE
LONDON - SEPTEMBER 19, 2014 11:21 AM (EDT)
A.M. Best has assigned a debt rating of "bbb-" to the EUR 250 million 5.25% subordinated fixed to floating rate guaranteed notes due 2044, issued by Atradius Finance, B.V. (Netherlands) and unconditionally and irrevocably guaranteed on a subordinated basis by Atradius N.V. (Atradius) (Netherlands), the non-operating holding company of the Atradius group of companies. The outlook assigned is stable.
The assigned debt rating reflects the contractual subordination of the notes within Atradius' capital structure in terms of priority of payment upon default. The guarantee ranks junior to the senior creditors of Atradius, but pari passu with all other subordinated obligations of the guarantor, except for those which are explicitly stated to rank ahead or junior to the guarantee.
The subordinated notes will strengthen Atradius' balance sheet at a fixed cost of 5.250% per annum for the first 10 years, thereafter reverting to a floating rate equating to the three month Euribor plus 5.031%. The proceeds will be used for general corporate purposes.
A.M. Best gives full equity credit for these hybrid securities within its evaluation of Atradius' consolidated risk-adjusted capitalisation. Financial leverage and interest coverage ratios for Atradius remain within A.M. Best's tolerance levels.
The debt rating is derived from A.M. Best's financial strength assessment of the Atradius group of companies. The rated entities of Atradius maintain a financial strength rating of A (Excellent) and the issuer credit rating of "a" with a stable outlook. Upward or downward rating actions will likely move in line with the ratings of the Atradius group of companies.
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best Europe - Rating Services Limited Supplementary Disclosure.
This rating announcement has been issued by A.M. Best Europe - Rating Services Limited, which is a subsidiary of A.M. Best Company. A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.