France-Based Insurer AXA's Tier 2 Subordinated Notes Rated 'BBB+'; Rating Subsequently Put On Watch Negative

MILAN (S&P Global Ratings) March 23, 2018--S&P Global Ratings today assigned its 'BBB+' long-term issue rating to the tier 2 subordinated notes issued by France-based AXA (A/Watch Neg/A-1), the holding company of AXA Group (core operating entities rated AA-/Watch Neg/--). We subsequently put the issue rating on CreditWatch negative in line with the long-term issuer credit rating (ICR) on AXA. We rate the notes two notches below the long-term ICR on AXA in accordance with our criteria for rating hybrid debt. We understand that the noteholders will be subordinate to AXA's senior creditors, and that AXA has the option of deferring interest on the notes. Furthermore, we note that interest deferral is mandatory if, under Solvency II, AXA's capital resources

...MILAN (S&P Global Ratings) March 23, 2018--S&P Global Ratings today assigned its '###+' long-term issue rating to the tier 2 subordinated notes issued by France-based AXA (A/Watch Neg/A-1), the holding company of AXA Group (core operating entities rated ##-/Watch Neg/--). We subsequently put the issue rating on CreditWatch negative in line with the long-term issuer credit rating (ICR) on AXA. We rate the notes two notches below the long-term ICR on AXA in accordance with our criteria for rating hybrid debt. We understand that the noteholders will be subordinate to AXA's senior creditors, and that AXA has the option of deferring interest on the notes. Furthermore, we note that interest deferral is mandatory if, under Solvency II, AXA's capital resources are insufficient to meet the solvency capital requirement or the minimum capital requirement; or if the relevant supervisory authority has determined that, in view of AXA's financial condition, AXA must take action in relation to payments...

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