Accor's Proposed Senior Unsecured Bonds Rated 'BBB-'; Proposed Subordinated Bonds 'BB' With Intermediate Equity Content

French lodging company Accor S.A. has announced a new issue and a liability management transaction. This includes the issuance of proposed perpetual deeply subordinated bonds to partly refinance its existing €900 million hybrid, issued in 2014, and senior unsecured bonds to refinance the €600 million notes due March 2019, of which €335 million is currently outstanding, and partly repay €900 million bonds due February 2021. We assess the proposed deeply subordinated notes as having intermediate equity content. In addition, Accor has also launched a tender offer on the current hybrid instrument with a tender cap at the new issue amount. The proposed tender transaction does not impair our view of permanence of the hybrid layer within Accor's capital structure. We

...+ French lodging company Accor S.A. has announced a new issue and a liability management transaction. This includes the issuance of proposed perpetual deeply subordinated bonds to partly refinance its existing 900 million hybrid, issued in 2014, and senior unsecured bonds to refinance the 600 million notes due March 2019, of which 335 million is currently outstanding, and partly repay 900 million bonds due February 2021. + We assess the proposed deeply subordinated notes as having intermediate equity content. + In addition, Accor has also launched a tender offer on the current hybrid instrument with a tender cap at the new issue amount. + The proposed tender transaction does not impair our view of permanence of the hybrid layer within Accor's capital structure. + We are assigning our '##' issue rating to Accor's subordinated notes to reflect their subordination and optional deferability and our '###-' issue rating to the proposed senior unsecured notes. LONDON (S&P Global Ratings) Jan....

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