Duke Energy Corp.'s Proposed Junior Subordinated Debentures Rated 'BBB-'

NEW YORK (S&P Global Ratings) Sept. 23, 2021--S&P Global Ratings today assigned its 'BBB-' issue-level rating to Duke Energy Corp.'s proposed junior subordinated notes due 2082. The company intends to use the net proceeds from these notes to redeem its $500 million 5.125% junior subordinated notes due 2073. 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 Duke Energy Corp. 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

...September 23, 2021 NEW YORK (S&P Global Ratings) Sept. 23, 2021--S&P Global Ratings today assigned its '###-' issue-level rating to Duke Energy Corp.'s proposed junior subordinated notes due 2082. The company intends to use the net proceeds from these notes to redeem its $500 million 5.125% junior subordinated notes due 2073. We classify these notes as hybrid securities with intermediate equity content (50%). We rate the securities two notches below our '###+' long-term issuer credit rating on Duke Energy Corp. 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 company's limited ability and lack of incentives to redeem them for a long-dated period meet our standards for permanence. In addition, the interest payments are deferrable, which...

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