PARIS (S&P Global Ratings) Jan. 11, 2017--S&P Global Ratings today assigned its 'BBB+' long-term issue rating to the tier 2 subordinated notes issued by France-based AXA (A/Stable/A-1), the holding company of AXA Group (core operating entities rated AA-/Stable/--). We rate the notes two notches below the long-term counterparty credit rating on the issuer, AXA, in accordance with our hybrid debt criteria. We understand that the noteholders will be subordinated to AXA's senior creditors, and that the insurer has the option of deferring interest on the notes. Furthermore, we note that interest deferral is mandatory if AXA breaches its regulatory solvency requirement. AXA can exercise a call of the notes in 2027 and subsequently at each quarterly interest payment date thereafter.
