Fitch rates Achmea notes BBB

Fitch Ratings said it assigned Achmea BV's proposed issue of dated fixed-rate reset subordinated tier 2 notes a BBB rating.

The notes will have a scheduled maturity date in November 2044 and a first call date in May 2034. They will be issued with a fixed coupon payable annually in arrears, and the fixed rate will be reset on the first reset date in October 2034 and every five years thereafter. The reset fixed rate will include a step-up of 100 basis points.

“The notes are rated three notches below Achmea's long-term issuer default rating of A to reflect their ‘poor’ recovery assumptions (two notches) and ‘moderate’ non-performance risk (one notch),” Fitch said in a news release.

The net proceeds from the issue of the notes will be used for general corporate purposes.

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