Best Assigns ‘a+’ Debt Rating to L&G Notes

A.M. Best Co. announced that it has assigned a prospective debt rating of “a+” to the proposed subordinated debt issue by U.K. insurer Legal & General Group plc

“The issue has undated maturity (albeit redeemable either at the option of the issuer on pre-set dates, or for taxation reasons, subject to FSA approval) and the ability to defer interest payments (in case of regulatory intervention and provided that no dividends or interest payments on any junior securities have been made),” said Best.

It noted that the “issue is part of the company’s existing GBP 2 billion [$3.6 billion] Euro Note Programme,” and added that the outlook is negative.”