FRANKFURT (Standard&Poor's) June 18, 2008--Standard&Poor's Ratings Services said today it affirmed its 'A+' junior subordinated long-term debt rating on the $2.0 billion undated, subordinated, fixed-rate callable bonds issued by Germany-based Allianz SE (AA/Stable/A-1+). The affirmation follows receipt of final documentation. We have characterized the bonds as having intermediate equity content. "The two-notch differential between the counterparty credit rating on Allianz SE and the rating assigned to the bonds reflects the bonds' subordinated nature and optional interest deferability," said Standard&Poor's credit analyst Karin Clemens. There is no additional notching for the mandatory deferral clauses because the risk of events that trigger mandatory deferral is relatively remote and the issue has an alternative payment mechanism (APM).
