Following a Change in Methodology, A.M. Best Downgrades Five Allianz SE Debt Ratings

  Following a Change in Methodology, A.M. Best Downgrades Five Allianz SE Debt

Business Wire

LONDON -- May 9, 2014

A.M. Best has downgraded the debt ratings to “a” from “a+” for the CHF 500
million 3.25% perpetual subordinated bond, the EUR 1,500 million 4.75%
perpetual subordinated bond and the USD 1,000 million 5.5% perpetual
subordinated bond issued by Allianz SE (Germany), and the EUR 1,400 million
4.375% perpetual subordinated bond and EUR 800 million 5.375 % perpetual
subordinated bond issued by Allianz Finance II B. V. and guaranteed by Allianz
SE. The outlook for all debt ratings remains stable. The financial strength
rating of A+ (Superior) and issuer credit rating (ICR) of “aa-”of Allianz SE
and all other ratings on debt issued or guaranteed by this entity remain

The rating actions follow changes to A.M. Best’s methodology as detailed in
the methodology paper “Insurance Holding Company and Debt Ratings”, which
became effective on 6 May 2014. Allianz SE’s obligations under the undated
subordinated notes rank junior to dated subordinated debt securities issued or
guaranteed by Allianz SE. Therefore, they have been downgraded by one notch in
line with the revised methodology’s guidance on notching for junior
subordinated debt.

Financial leverage and interest coverage ratios for Allianz SE remain within
A.M. Best’s tolerance levels.

The debt ratings are notched down from Allianz SE’s ICR. Downward or upward
rating actions will likely move in line with Allianz SE’s ICR.

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

This rating announcement has been issued by A.M. Best Europe – Rating Services
Limited, which is a subsidiary of A.M. Best Company. A.M. Best Company is the
world's oldest and most authoritative insurance rating and information source.
For more information, visit

       Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.


A.M. Best Europe – Rating Services Limited
Charlotte Vigier
Senior Financial Analyst
+(44) 20 7397 0270
Anandi Nangy-Kotecha
Associate Director, Analytics
+(44) 20 7397 0271
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Senior Manager, Public Relations
+(1) 908-439-2200, ext. 5378
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+(1) 908-439-2200, ext. 5644
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