AXA's Tier 2 Subordinated Notes Issued Under Its Euro Medium-Term Note Program Rated 'A-'

MILAN (S&P Global Ratings) April 5, 2023--S&P Global Ratings today said it assigned its 'A-' issue rating to the tier 2 subordinated notes issued by France-based global multiline insurer AXA (A+/Stable/A-1+) under its euro medium-term note (EMTN) program. AXA is the operating holding company of AXA group (core operating entities rated AA-/Stable/--), The rating on the 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, taking into account the group's solvency capital requirement (SCR) coverage ratio

...April 5, 2023 MILAN (S&P Global Ratings) April 5, 2023--S&P Global Ratings today said it assigned its 'A-' issue rating to the tier 2 subordinated notes issued by France-based global multiline insurer AXA (A+/Stable/A-1+) under its euro medium-term note (EMTN) program. AXA is the operating holding company of AXA group (core operating entities rated ##-/Stable/--), The rating on the 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, taking into account the group's solvency capital requirement (SCR) coverage ratio of 215% at year-end 2022. AXA can defer interest on the notes discretionally (unless dividends are paid) and the interest deferral is mandatory if, under Solvency II, AXA breached the 100% SCR...

Ratings Action