American Electric Power Co. Inc.'s Proposed Junior Subordinated Notes Rated 'BBB-'

NEW YORK (S&P Global Ratings) June 17, 2024--S&P Global Ratings today assigned its 'BBB-' issue-level rating to American Electric Power Co. Inc.'s (AEP) junior subordinated notes due 2054. The company intends to use the net proceeds from these notes for general corporate purposes including paying off any short-term borrowings. We classify these notes as hybrid securities with intermediate equity content (50%). We rate the securities two notches below our 'BBB+' long-term issuer credit rating on AEP to reflect their subordination and the company's ability to defer its interest payments on the notes. We base our intermediate equity treatment on the instrument's permanence, subordination, and deferability features as defined in our criteria for hybrid securities. The securities' long-dated nature and the

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