A.M. Best Co. has assigned an “a+” rating to the proposed perpetual step up-loan notes (approximately USD 500 million issued in AUD) to be issued by ELM B.V., a bankruptcy remote repackaging vehicle based in the Netherlands. They are to be secured over perpetual subordinated step-up loan notes issued by Swiss Reinsurance Company. The rating outlook is negative.
The rating of this instrument reflects its deeply subordinated nature and the financial strength of the collateral obligor and guarantor, respectively. A.M. Best will credit these hybrid securities up to a limit of 20 percent of total adjusted capital.