A.M. Best Assigns Ratings to Allianz SE’s Subordinated Notes
LONDON -- February 7, 2014
A.M. Best Europe – Rating Services Limited has assigned a debt rating of “a+”
to the CHF 500 million 3.25% undated subordinated notes issued by Allianz SE
(Germany) on 4 February, 2014. The assigned outlook is stable.
The undated subordinated bond has been placed in Switzerland and will pay a
fixed coupon of 3.25% until July 2019. Thereafter, the coupon will be reset
every five years based on the then-prevailing five-year-swap rate, plus a
margin of 2.573% per annum. The proceeds of this issue are to be used by
Allianz SE for general corporate purposes and to replace maturing debt.
A.M. Best also has assigned a debt a rating of “a+” to the EUR 1.5 billion
4.75% undated subordinated notes issued by Allianz SE on 24 October 2013. The
assigned outlook is stable.
The coupon on these subordinated notes is 4.75% per annum until 2023 (floating
coupon thereafter). This issue replaced the EUR 1.5 billion 5.5% undated
subordinated notes, which were called for redemption on 15 January 2014.
Concurrently, A.M. Best has withdrawn the “a+” debt rating on the redeemed
The financial leverage and interest coverage ratios remain within A.M. Best’s
tolerance levels for the ratings.
The subordinated notes are notched down from Allianz SE’s issuer credit
rating. The ratings of Allianz SE (and any associated debt) could benefit from
positive rating actions if the group continues to outperform its peers in
terms of operating performance and risk-adjusted capitalisation. Negative
ratings actions could occur if there were a worsening of Allianz SE’s
risk-adjusted capitalisation, which could be the result of investment
write-downs or a deterioration of economic conditions in key territories.
The methodology used in determining these ratings is Best’s Credit Rating
Methodology, which provides a comprehensive explanation of A.M. Best’s rating
process and contains the different rating criteria employed in the rating
process. Best’s Credit Rating Methodology can be found at
In accordance with Regulation (EC) No. 1060/2009, the following is a link to
required disclosures: A.M. Best Europe - Rating Services Limited Supplementary
A.M. Best Europe – Rating Services Limited is a subsidiary of A.M. Best
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Charlotte Vigier, +(44) 20 7397 0270
Senior Financial Analyst
Anandi Nangy-Kotecha, +(44) 20 7397 0271
Rachelle Morrow, +(1) 908-439-2200, ext. 5378
Senior Manager, Public Relations
Jim Peavy, +(1) 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
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