Spain-Based Multiline Insurance Group Mapfre's Proposed Subordinated Notes Rated 'BBB-'

MILAN (S&P Global Ratings) March 22, 2017--S&P Global Ratings said today that it has assigned its 'BBB-' rating to the proposed subordinated notes of Spain-based multiline insurance group Mapfre S.A. (BBB+/Stable/--). The notes will have a 30-year term and will be callable after 10 years. We expect the notes will qualify as tier 2 instruments under Solvency II regulation. The rating is subject to confirmation of the notes' final terms and conditions. The rating reflects our standard notching approach for rating junior subordinated debt issues, which in this instance is two notches below the long-term counterparty credit rating on the issuer. We have analyzed and rated the proposed issuance on the understanding that: The noteholders will be subordinated to senior

...MILAN (S&P Global Ratings) March 22, 2017--S&P Global Ratings said today that it has assigned its '###-' rating to the proposed subordinated notes of Spain-based multiline insurance group Mapfre S.A. (###+/Stable/--). The notes will have a 30-year term and will be callable after 10 years. We expect the notes will qualify as tier 2 instruments under Solvency II regulation. The rating is subject to confirmation of the notes' final terms and conditions. The rating reflects our standard notching approach for rating junior subordinated debt issues, which in this instance is two notches below the long-term counterparty credit rating on the issuer. We have analyzed and rated the proposed issuance on the understanding that: + The noteholders will be subordinated to senior creditors; + Interest deferral can occur at the option of the issuer; + Interest deferral is mandatory should the group be unable to continue meeting its minimum regulatory capital requirements; and + The proposed notes will be...

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