Nov 8 - Fitch Ratings has assigned Friends Life Group plc’s (FLG) issue of perpetual hybrid securities a ‘BBB+’ rating. The rating is on Rating Watch Negative (RWN), in line with the RWN on FLG. As FLG will use most of the proceeds to repay existing debt to its parent, Resolution Holdings (Guernsey) Limited, the issuance is not expected to have a material impact on FLG’s financial leverage ratio. The new issue is classified as Upper Tier 2 notes for regulatory purposes, with the option to redeem on every coupon date after year six. FLG has the option to defer coupons at any time, subject to a dividend stopper. The notes are subordinated to senior creditors, and guaranteed on a subordinated basis by Friends Life Limited (Issuer Default Rating ‘A’/RWN), which is the group’s main operating subsidiary. The securities will pay a fixed rate of interest. The terms of the issue include mandatory interest deferral, with triggers based on regulatory solvency and legal insolvency. The terms and conditions of the notes have been designed having had regard to the latest proposals under the proposed Solvency II regime.