...October 23, 2019 LONDON (S&P Global Ratings) Oct. 23, 2019--S&P Global Ratings said today that it assigned its '##' long-term issue rating to the proposed undated, noncall 5.5 years, optionally deferrable, and deeply subordinated hybrid notes to be issued by Accor S.A. (###-/Stable/A-3). The size of the hybrid issuance remains subject to market conditions, but is expected to be up to 500 million. Accor will use the proceeds to refinance the 514 million residual amount remaining of the 900 million hybrid it issued in 2014. The older hybrid's first step-up date, when bonds become callable, will be in June 2020. Until then, we anticipate that Accor's outstanding hybrid will temporarily increase to about 1.0 billion-1.5 billion, depending on the amount of the 2014 instrument to be repaid via the tender offer. We would classify the temporary increase as debt with no equity content under our methodology until the existing hybrid is repaid--we expect this to occur after June 2020. In parallel,...
