Fitch Ratings and S&P Global Ratings have assigned BBB+ ratings to Fubon Life Singapore's proposed US-dollar tier 2 subordinated dated capital bonds, according to recent releases.

Fubon Life Singapore is a wholly owned offshore special purpose vehicle of Taiwan-based Fubon Life Insurance.

The proposed bonds serve as the direct, unsecured, and subordinated obligations of the issuer, Fitch said.

The parent guarantees full payment of the principal and interest, which is reflected in S&P's rating.

Fitch rates the bonds a notch below the parent's A- issuer default rating, stemming from its "below average" recovery prospects for subordinated bonds with an operating company guarantor in case of a default.

S&P has an equivalent rating on the subordinated bond to that on Fubon Life's subordinated obligations, considering the subordinated guarantee.