Preliminary Rating Assigned To Demeter Investments# Series 2018-13 Fixed-Rate Reset Repack Notes Due 2048

Stocks and Financial Services Press Releases Tuesday April 17, 2018 17:43
LONDON--17 Apr--S&P Global Ratings

LONDON (S&P Global Ratings) April 17, 2018--S&P Global Ratings today assigned its preliminary 'A' credit rating to Demeter Investments B.V.'s series 2018-13 fixed-rate reset notes that will be secured on fixed-rate reset dated subordinated notes issued by Zurich Insurance Co. Ltd. (ZIC) (see list below).

At closing, Demeter Investments will use the issuance proceeds of the notes to purchase fixed-rate reset dated subordinated notes issued by ZIC.

Interest on the repack notes will accrue at a fixed rate until 2028 and will then bear interest at a rate of interest equal to the aggregate of the five-year constant maturity treasury rate plus a margin. The payment on the notes reflects the payments generated by issuer payments to the underlying collateral.

ZIC has the option to defer interest payments on the loan notes. In such instances, interest on the repack notes will be deferred in the same manner.
ZIC will pay all of Demeter Investments' ongoing expenses in relation to this series of repack notes.
ZIC may choose to redeem the repack notes early at their full principal amount (including accrued interest and deferred interest, if any):
  • If a recalculation event, a special tax event, an accounting event, a ratings methodology event, or a regulatory event (as defined in the loan notes' documentation) occurs; or
  • At its own discretion on any payment date, following the first call date.

The Bank of New York Mellon (London branch) is the custodian and paying agent. Under our current counterparty criteria, it is eligible to act as a custodian and paying agent for notes rated up to 'A' (see "Counterparty Risk Framework Methodology And Assumptions," published on June 25, 2013).

In accordance with our "Global Methodology For Rating Repackaged Securities" criteria, published on Oct. 16, 2012, we have weak-linked our preliminary rating on the repack notes to the lower of: