EC approves Aegon bailout without forcing coupon deferrment

The European Commission (EC) has approved the recapitalisation of the Hague-based insurer Aegon by the Dutch government during the financial crisis in 2008, leading rating agency Fitch to raise its rating and outlook on the firm's subordinated debt.

Fears that an approval would be subject to EC pressure to defer coupon payment on the hybrid debt held by other stakeholders proved unfounded, and as a result rating agency Fitch upgraded the firm's hybrid capital instruments to BBB from BB and