I riacquisti dei bond subordinati e perpetui delle banche ed assicurazioni estere... la valutazione teorica sul piano dei rating è ovviamente positiva, in specie di quello che misura la financial strenght, ma l'incidenza effettiva resta condizionata alla misura di incremento del core Tier 1 realizzato per questa via.
Fitch: No Rating Impact on Lloyd's from Subordinated Bond Buyback
22 Apr 2009 11:01 AM (EDT)
Fitch Ratings-London-22 April 2009: Fitch Ratings says the subordinated debt buyback by Lloyd's of London (Lloyd's) announced today could marginally improve its quality of capital, but has no material impact on its current Insurer Financial Strength 'A+' Rating with Stable Outlook. The ratings on the remaining subordinated debt are not affected by the transaction (full list of debt below).
Lloyd's has today announced the buyback of up to GBP100m of outstanding subordinated debt securities. Fitch understands that the buyback has been approved by the Council of Lloyd's and given the necessary waiver by the Financial Services Authority (FSA).
The buyback will be conducted through a modified Dutch auction process, with the minimum purchase price representing 20-47% discount to the par value, depending on the bond. In Fitch's view, equity credit treatment of remaining hybrid subordinated debt is not affected by the buy back process, outside of Fitch's standard rules for assigning equity credit.
The buyback could marginally improve Lloyd's quality of capital, depending on the amount of debt repurchased, as hybrid Tier 1 and 2 capital is exchanged into core Tier 1 capital via the cash profits arising from the current low pricing of these bonds.
However, given the size of the buyback relative to Lloyd's current capitalisation, this improvement is not material enough to impact the rating.
Fitch has historically viewed Lloyd's capitalisation as strong and commensurate with the rating level. The capital strength of Lloyd's is derived from assets held as part of member capital and central capital; despite the volatile financial markets, both these sources of capital increased around 5.6% at FYE08.
In addition, Lloyd's holds a strong surplus above the regulatory internal capital requirement. Lloyd's is a global insurance and reinsurance market composed of 80 syndicates (as at 31 December 2008), and operates in over 200 countries and territories. In 2008 it reported gross written premiums of GBP17,985m (2007: GBP16,366m) and was ranked fourth by premium income amongst global reinsurers. Subordinated debt affected by the buy back:
-GBP300m 6.875% per annum subordinated debt with a final maturity in November 2025, callable from November 2015: rated A- (A minus)
-EUR300m 5.625% per annum subordinated debt with a final maturity in November 2024, callable from November 2014: rated A- (A minus)
-GBP500m 7.421% per annum perpetual subordinated debt, redeemable in 2017: rated A- (A minus)