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

mai welcomes engineering contractor Thai Enger Holding on October 24

Market for Alternative Investment (mai) will list Thai Enger Holding pcl, a holding company that invests in a core company operating as civil engineering contractor, on October 24 under the ticker symbol "TIGER". The company has a market capitalization...

Photo Release: KBank celebrates the successful launch of sustainability bonds

Recently, at KBank Head Office, Ms. Kattiya Indaravijaya, KBank President, Dr. Adit Laixuthai (second from right), KBank Senior Executive Vice President, Mr. Joris Dierckx (third from left), Regional Head for Southeast Asia, CEO for BNP Paribas Singapore...

Photo Release: WHA Group Congratulates K.W. Metal Work on 1st Trading Day

Mr. Vivat Jiratikarnsakul (2nd left), Chief Operating Officer – Industrial and International; and Mr. Apisak Kamwan (far left), Assistant Director, Industrial Land Customer Development, WHA Industrial Development PLC, congratulates Mr. Ekapan...

Delta Thailand Video Campaign Envisions Change for a Better Tomorrow

Delta Electronics (Thailand) PCL. launched a video campaign that envisions change for a better tomorrow. Every day, Delta leverages on its energy-efficient solutions to transform the lives of users because it believes - life gets better by change. The...

Business operators urged to brace for Thai transfer pricing law, tax and legal changes in digital economy

Businesses are steadily moving towards more diverse online and offline platforms. MNCs are now emerging from survival mode and focussing once more on growth and opportunities. This drives massive opportunities and also poses challenges for companies when...

Related Topics