CMS Energy Corp.'s Perpetual Preferred Stock Rated 'BBB-'

NEW YORK (S&P Global Ratings) June 24, 2021--S&P Global Ratings today assigned its 'BBB-' rating to CMS Energy Corp.'s series C cumulative redeemable perpetual preferred stock. CMS intends to use the net proceeds for general corporate purposes, to fund working capital, and repay debt. We assess the issuance as having intermediate equity content (50%). We rate the security 'BBB-' or two notches below our long-term issuer credit rating on CMS Energy Corp., reflecting subordination and the company's ability to defer dividend payments on the instrument. Our intermediate equity treatment is premised on the instruments' permanence, subordination, and deferability features. The preferred stock's perpetual nature, along with the company's limited ability and lack of incentive to redeem the issuance for a

...June 24, 2021 NEW YORK (S&P Global Ratings) June 24, 2021--S&P Global Ratings today assigned its '###-' rating to CMS Energy Corp.'s series C cumulative redeemable perpetual preferred stock. CMS intends to use the net proceeds for general corporate purposes, to fund working capital, and repay debt. We assess the issuance as having intermediate equity content (50%). We rate the security '###-' or two notches below our long-term issuer credit rating on CMS Energy Corp., reflecting subordination and the company's ability to defer dividend payments on the instrument. Our intermediate equity treatment is premised on the instruments' permanence, subordination, and deferability features. The preferred stock's perpetual nature, along with the company's limited ability and lack of incentive to redeem the issuance for a long-dated period, meets our standards for permanence. In addition, the dividend payments are deferrable, which fulfills the deferability element. The instruments are also subordinated...

Ratings Action