MILAN (S&P Global Ratings) April 1, 2019--S&P Global Ratings today assigned its 'BBB+' rating to the subordinated notes that Ageas SA/NV (Ageas; A/Stable/A-1) intends to issue. The notes will have a 30-year tenor and we understand they will be callable after 10 years. We derived the rating using our minimum notching for subordinated debt issues, which is two notches below the long-term issuer credit rating on Ageas. We have analyzed and rated the proposed debt issue on the understanding that: The note holders will be subordinated to senior creditors; Interest deferral can occur at the option of the issuer; Interest deferral is mandatory should the group be unable to continue meeting its minimum regulatory solvency capital requirements; and The notes will be eligible as tier 2 under Solvency II. We believe that Ageas will use the proceeds to strengthen the group's Solvency II regulatory capital buffer after its main operating subsidiary, AG Insuranc
