Duke Energy Corp.'s Series B Cumulative Redeemable Perpetual Preferred Stock Rated 'BBB'

NEW YORK (S&P Global Ratings) Sept. 9, 2019--S&P Global Ratings today assigned its 'BBB' issue-level rating to Charlotte, N.C.-based Duke Energy Corp.'s proposed series B cumulative redeemable preferred shares. The company will use the proceeds from these shares to repay a portion of its outstanding commercial paper, to repay at maturity $500 million of outstanding 5.05% Senior Notes due September 15, 2019, and for general corporate purposes. We expect to assign intermediate equity credit (50% equity) to the shares based on the proposed terms. Our intermediate equity treatment is largely premised on the instrument's permanence, subordination, and deferrability features, as defined under our criteria for hybrid securities. The series B preferred stock is perpetual, with no maturity date and no

...September 9, 2019 NEW YORK (S&P Global Ratings) Sept. 9, 2019--S&P Global Ratings today assigned its '###' issue-level rating to Charlotte, N.C.-based Duke Energy Corp.'s proposed series B cumulative redeemable preferred shares. The company will use the proceeds from these shares to repay a portion of its outstanding commercial paper, to repay at maturity $500 million of outstanding 5.05% Senior Notes due September 15, 2019, and for general corporate purposes. We expect to assign intermediate equity credit (50% equity) to the shares based on the proposed terms. Our intermediate equity treatment is largely premised on the instrument's permanence, subordination, and deferrability features, as defined under our criteria for hybrid securities. The series B preferred stock is perpetual, with no maturity date and no incentive to redeem the issue for a long-dated period, meeting our standards for permanence. In addition, the dividend payments are deferrable, fulfilling the deferrability element...

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