Challenger Life Co. Ltd. Proposed Tier 2 Note Issuance Rated #BBB#

Stocks and Financial Services Press Releases Monday November 13, 2017 17:39
MELBOURNE--13 Nov--S&P Global Ratings

MELBOURNE (S&P Global Ratings) Nov. 13, 2017--S&P Global Ratings today said it has assigned its long-term 'BBB' issue credit rating to Challenger Life Co. Ltd.'s (CLC; A/Positive/--) proposed unsecured subordinated notes. CLC is currently contemplating offering the notes in two tranches; one floating rate and one fixed to floating rate. If both tranches are issued, two separate deeds poll will be executed with the only differences between the two being the issue name and form of conditions relating to interest payments. CLC is a wholly owned core operating subsidiary of Challenger Ltd. Group and the group's principal operating entity.

The rating assigned to the notes is three notches below the credit rating on CLC. The following factors reflect the difference:
  • The notes' subordinated status (deduct one notch);
  • The risk of partial or untimely payment of coupons, in our view (deduct one notch); and
  • Contingent capital clauses for conversion into common equity or write-down (deduct one notch).

We have assessed the proposed issue as having intermediate equity content reflecting the note attributes as well as their very long scheduled tenor including a five year noncall period, which support the equity characteristics. We will include the value of the issue in CLC's total adjusted capital, subject to our thresholds. In our view, these notes would be able to absorb losses on a going-concern basis through nonpayment of coupons, conversion into common equity, or principal write-down. On issuance, we understand that these securities will qualify as fully compliant Tier 2 capital under the Australian Prudential Regulation Authority's requirements. These securities are due to mature 25 years from the date of issue, and have a noncall period of five years from the date of issue.


Latest Press Release

Banco Votorantim S.A.#s Proposed Perpetual Notes Rated #CCC+#

SAO PAULO (S&P Global Ratings) Nov. 19, 2017--S&P Global Ratings said today that it assigned its 'CCC+' issue-level rating to Banco Votorantim S.A.'s (BV; BB/Negative/B) proposed perpetual Tier 1 notes. Additionally, we attributed intermediate...

Statement by IMF Managing Director Christine Lagarde at the Conclusion of Her Visit to Jamaica

- Participants at the regional forum discussed issues concerning crime and youth unemployment, fiscal policy and political cycles, financial stability and growth tradeoffs. - Jamaica is making progress; main challenges are to refocus the public sector's...

PT Bank Rakyat Indonesia Outlook Revised To Positive On Resilient Asset #BB+/B# Ratings Affirmed

SINGAPORE (S&P Global Ratings) Nov. 17, 2017--S&P Global Ratings today revised its outlook on PT Bank Rakyat Indonesia (Persero) Tbk. (BRI) to positive from stable. At the same time, we affirmed our 'BB+' long-term and 'B' short-term issuer...

Photo Release: ACMF Conference on Regional Connectivity for Sustainable Growth

Executives of ASEAN capital market regulators attended the ASEAN Capital Markets Forum (ACMF) Conference 2017 under the theme, ""Strengthening ASEAN Capital Market Connectivity,"" highlighting ACMF's concerted efforts towards regional collaboration for...

MyState Bank Ltd. Ratings Lowered To #BBB-/A-3#, Then Withdrawn At Issuer#s Request

MELBOURNE (S&P Global Ratings) Nov. 17, 2017--S&P Global Ratings today said it has lowered its long-term issuer credit rating on Tasmania-based MyState Bank Ltd. (MSB) to 'BBB-' from 'BBB' and its short-term issuer credit rating to 'A-3' from...

Related Topics