CMS Energy Corp.'s Fixed-To Fixed-Reset Rate Junior Subordinated Notes Rated 'BBB-'

NEW YORK (S&P Global Ratings) Feb. 18, 2025--S&P Global Ratings today assigned its 'BBB-' issue-level rating to Jackson, Mich. -based CMS Energy Corp.' s $1 billion, 6.5% fixed- to fixed-reset rate junior subordinated notes due June 2055. The company intends to use the net proceeds from these notes for general corporate purposes. We classify these notes as hybrid securities with intermediate equity content (50%). This reflects the offering's permanence, subordination, and deferability features. In line with our criteria, we will reclassify the notes as having minimal equity content after June 2035 because the remaining period until maturity will be less than 20 years. We rate these securities two notches below our ?BBB+' long-term issuer credit rating on CMS Energy to

...February 18, 2025 NEW YORK (S&P Global Ratings) Feb. 18, 2025--S&P Global Ratings today assigned its '###-' issue-level rating to Jackson, Mich. -based CMS Energy Corp.'s $1 billion, 6.5% fixed- to fixed- reset rate junior subordinated notes due June 2055. The company intends to use the net proceeds from these notes for general corporate purposes. We classify these notes as hybrid securities with intermediate equity content (50%). This reflects the offering's permanence, subordination, and deferability features. In line with our criteria, we will reclassify the notes as having minimal equity content after June 2035 because the remaining period until maturity will be less than 20 years. We rate these securities two notches below our `###+' long-term issuer credit rating on CMS Energy to reflect their subordination and management's ability to defer interest payments on the instrument. The long-term nature of the junior subordinated notes, along with the company's limited ability and lack...

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