...NEW YORK (S&P Global Ratings) Sept. 13, 2018--S&P Global Ratings today assigned its '###' issue-level rating to Duke Energy Corp.'s $500 million junior subordinated debentures due 2078. Duke intends to use the net proceeds to repay a portion of its outstanding commercial paper and for general corporate purposes. We classify these securities as hybrid securities with intermediate equity content (50%). We rate the securities two notches below our 'A-' issuer credit rating on Duke to reflect the instrument's subordination and the company's ability to defer interest payments. Our intermediate equity treatment is premised on the instrument's permanence, subordination, and deferability features, as defined under our criteria for hybrid securities. The security's long-dated nature, along with the company's limited ability and lack of incentives to redeem the issue for a long-dated period, meets our standards for permanence. The interest payments are deferrable, fulfilling the deferability element...
