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FOR IMMEDIATE RELEASE
LONDON - NOVEMBER 21, 2014 01:22 PM (EST)
A.M. Best has assigned a debt rating of "bbb" to the EUR 1.5 billion fixed/floating rate more deeply subordinated perpetual notes issued today by Generali Finance B.V. (Generali Finance) (Luxembourg) and guaranteed by Assicurazioni Generali S.p.A. (Generali) (Italy). The assigned outlook is stable.
The notes have been issued by Generali Finance under the EUR 12 billion Euro Medium Term Note (EMTN) programme that was renewed earlier this year. The more deeply subordinated perpetual notes will pay a fixed annual coupon of 4.596% per annum through to 21 November 2025 and thereafter Euribor plus 450 basis points paid quarterly in arrears.
The proceeds of the issue are expected to be used to finance the buyback offer that expired on 13 November 2014 on three series of perpetual fixed/floating notes with first call dates in 2016 and 2017, issued by Generali Finance and guaranteed by Generali.
A.M. Best will continue to monitor Generali's interest coverage and leverage ratios, although the present levels do not represent a concern at the current rating level.
The debt rating of the more deeply subordinated perpetual notes is notched down from Generali's issuer credit rating (ICR). The stable outlook is in line with Generali's ICR outlook. Downward or upward rating actions will likely move in line with Generali's ICR.
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.
Key insurance criteria reports utilised:
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.