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   Ratings  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 unchanged.  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 www.ambest.com/ratings/methodology.  In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best Europe - Rating Services Limited Supplementary Disclosure.  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 www.ambest.com.         Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.  Contact:  A.M. Best Europe – Rating Services Limited Charlotte Vigier Senior Financial Analyst +(44) 20 7397 0270 charlotte.vigier@ambest.com or Anandi Nangy-Kotecha Associate Director, Analytics +(44) 20 7397 0271 anandi.nangy-kotecha@ambest.com or Rachelle Morrow Senior Manager, Public Relations +(1) 908-439-2200, ext. 5378 rachelle.morrow@ambest.com or Jim Peavy Assistant Vice President, Public Relations +(1) 908-439-2200, ext. 5644 james.peavy@ambest.com  
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