MELBOURNE (S&P Global Ratings) Oct. 6, 2016--S&P Global Ratings today said that it has assigned its long-term 'BBB+' issue credit rating to AAI Ltd.'s (AAIL; A+/Stable/--) proposed A$330 million floating rate subordinated notes. AAIL is a wholly owned core operating subsidiary of Suncorp Group Ltd. (SGL; A/Stable/--) and the group's principal Australian non-life insurer. The rating assigned to the notes is three notches below the issuer credit rating, taking into account management's ability to defer coupon payments, structural subordination, and the inclusion of a nonviability contingent capital clause (NVCC). In the unlikely event the NVCC clause is triggered, AAIL must convert the notes to common equity of the group, or write them off. These security attributes, together with its very
