...June 26, 2024 TOKYO (S&P Global Ratings) June 26, 2024--S&P Global Ratings today said it will classify Orix Corp.'s (###+/Stable/--) proposed subordinated bonds as having intermediate equity content. This follows Orix's announcement today that it will issue subordinated bonds. Orix said it will issue the bonds to refinance subordinated bonds it issued in March 2020. The issuance amount of the existing bonds totals Ñ60 billion. We assume Orix will likely raise a total of Ñ60 billion through hybrid securities including the proposed subordinated bonds and it will likely fully refinance the existing bonds by the first call date in March 2025. We classify the bonds as having intermediate equity content until the first callable date in 2030 when its remaining period to effective maturity shrinks to less than 20 years. We consider the step-up date as the effective maturity date. The characteristics of the subordinated bonds--the issuer's option to defer interest payments, a sufficient long residual...
