France-Based Utility Veolia Environnement S.A.'s Proposed Junior Subordinated Hybrid Security Rated 'BB+'

Veolia Environnement S.A. is proposing to issue a €500 million junior subordinated perpetual hybrid security. The instrument's first reset date is in February 2028. We assess the proposed security as having intermediate equity content. We assigned our 'BB+' rating to the proposed security to reflect its subordination and optional deferability. PARIS (S&P Global Ratings) Nov. 8, 2021--S&P Global Ratings said today that it assigned its 'BB+' long-term rating to the proposed, undated, optionally deferrable, and deeply subordinated €500 million hybrid capital security to be issued by France-based utility Veolia Environnement S.A. (Veolia; BBB/Stable/A-2). We consider the proposed security to have intermediate equity content until its first reset date (February 2028) because it meets our hybrid capital criteria in terms of

...November 8, 2021 - Veolia Environnement S.A. is proposing to issue a 500 million junior subordinated perpetual hybrid security. - The instrument's first reset date is in February 2028. - We assess the proposed security as having intermediate equity content. - We assigned our '##+' rating to the proposed security to reflect its subordination and optional deferability. PARIS (S&P Global Ratings) Nov. 8, 2021--S&P Global Ratings said today that it assigned its '##+' long-term rating to the proposed, undated, optionally deferrable, and deeply subordinated 500 million hybrid capital security to be issued by France-based utility Veolia Environnement S.A. (Veolia; ###/Stable/A-2). We consider the proposed security to have intermediate equity content until its first reset date (February 2028) because it meets our hybrid capital criteria in terms of its subordination, perpetual nature, and optional interest deferability during this period. We arrived at our '##+' issue rating by notching-down from...

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