AXA: Moody's rates latest issue as 'A3(hyb)'
(CercleFinance.com) - Moody's Investors Service announced on Friday that it had attributed an "A3(hyb)" rating to the latest bond issue launched by AXA.
In a statement, the rating agency justifies its decision by (1) the subordinated nature of the debt, (2) the existence of a suspension of coupon payments clause and (3) the possibility of accumulating deferred payments.
Moody's explains that its rating is in line with similar instruments issued by other issuers.
However, Moody's said it has placed its A3(hyb) rating "under review" with a potential upgrade, as it did for the group's other ratings following the announcement of AXA S.A.'s plan to become an internal reinsurer.
AXA announced last night that it had made a 1.25 billion euro subordinated bond issue with institutional investors yesterday, maturing in 2043, to refinance part of its debt.
The transaction met with strong investor demand, with the issue oversubscribed to almost twice.
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