OREANDA-NEWS.  Fitch Ratings has assigned China Life Insurance Company Limited's (China Life; both Insurer Financial Strength Rating and IDR at 'A+'/Stable) USD1.28bn 4% subordinated notes due 2075 (which may be extended) a final rating of 'A-'. The notes are classified as Core Tier II instruments under China's new solvency regime - China Risk-Oriented Solvency System (C-ROSS) and may be effectively perpetual as they may be extended for an additional 60 years each time they become due.

The assignment of the final rating follows the receipt of documents conforming to information already received and the final rating is in line with the expected rating assigned on 19 June 2015.

KEY RATING DRIVERS
The notes are rated two notches below China Life's IDR to reflect the notes' poor recovery prospects due to their subordination - the claims under the notes will, in the event of winding-up, be subordinated to the claims of policyholders and general creditors and the holders of any supplemental capital of the issuer. The notes rank senior to junior obligations, such as ordinary shares. No additional notching is applied for non-performance risk, which Fitch views as minimal, as interest deferral is at the issuer's sole discretion. The proceeds are to be used to supplement China Life's capital and further improve its solvency condition.

RATING SENSITIVITIES
Any change to China Life's IFS rating is likely to result in a corresponding change in the issuer's IDR and the rating of this debt issue.

The 'A-' debt rating was established using notching criteria that have been proposed by Fitch, but are not yet final. The outcome would be the same even if the proposed criteria are not made final, and current notching criteria are maintained instead.