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S&P : Standard Life and core subs unaffected by company’s proposal to junior sub note holders

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Standard & Poor’s Ratings Services said today that its ratings and outlook on Standard Life PLC and its core insurance operating subsidiaries (rated A+/Stable/–) are unaffected by the company’s proposal to holders of the outstanding €750 million junior subordinated notes to sell their bonds back to the company. We understand that Standard Life has invited holders of the bonds, rated ‘A-‘ and guaranteed by Standard Life Assurance Ltd. (A+/Stable/–), to submit offers to sell their bonds back by Sept. 9, 2011.

We understand that this proposal forms part of Standard Life’s active capital management strategy. Given the current strength of Standard Life’s capital position, we do not consider that the proposal will affect our assessment of the company’s overall capitalization or ratings. We expect Standard Life to continue to manage capital in line with a very strong overall capitalization assessment and for this to remain a key rating strength. In addition, we believe that any acceptance by Standard Life of offers made by noteholders would reduce financial leverage ratios and improve fixed-charge coverage going forward.

Source : Standard & Poor’s