AXA's Tier 2 Subordinated Notes Issued Under Its EMTN Program Rated 'BBB+'

PARIS (S&P Global Ratings) Jan. 6, 2022--S&P Global Ratings today said it assigned its 'BBB+' issue rating to the tier 2 subordinated notes issued by France-based global multiline insurer AXA (A/Stable/A-1), the holding company of AXA Group (core operating entities rated AA-/Stable/--), under its euro medium-term note (EMTN) program. The rating on notes is two notches below the long-term issuer credit rating on AXA. We deduct: One notch to reflect the notes' subordination to the company's senior obligations; and One notch to reflect the payment risk from the mandatory and optional coupon deferral features. A one-notch deduction sufficiently reflects our view of the payment risk. This is because interest deferral is mandatory if, under Solvency II, AXA's capital resources do

...January 6, 2022 PARIS (S&P Global Ratings) Jan. 6, 2022--S&P Global Ratings today said it assigned its '###+' issue rating to the tier 2 subordinated notes issued by France-based global multiline insurer AXA (A/Stable/A-1), the holding company of AXA Group (core operating entities rated ##-/Stable/--), under its euro medium-term note (EMTN) program. The rating on notes is two notches below the long-term issuer credit rating on AXA. We deduct: - One notch to reflect the notes' subordination to the company's senior obligations; and - One notch to reflect the payment risk from the mandatory and optional coupon deferral features. A one-notch deduction sufficiently reflects our view of the payment risk. This is because interest deferral is mandatory if, under Solvency II, AXA's capital resources do not meet the solvency capital requirement (SCR) or the minimum capital requirement; or if the relevant supervisory authority has determined that, given the group's financial condition, AXA must take...

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