Standard & Poor's (S&P) affirmed the A long-term junior subordinated debt rating on the Legal & General group's £400m fixed-rate, undated, reset subordinated notes after it received the final documentation.
The rating on the notes reflects the subordinated status of bondholders relative to senior creditors, and the interest deferral features, said the ratings agency.
“The notes qualify as hybrid equity in S&P's capital analysis, and as Upper Tier II capital on a regulatory basis,” said S&P's credit analyst Mark Button.
“S&P considers the issue to be a long-term feature of the Legal & General group's capital structure and that, if redeemed, it would be replaced with similar or better quality instruments.”
The issue is subordinated, undated, and has a dividend-based optional interest-deferral trigger.
