French Energy Company EDF's Proposed Hybrid Rated 'BB'; Equity Content Unaffected By Proposed Liability Management

Electricité de France S.A. (EDF) is proposing a junior subordinated hybrid security issuance to partially refinance its existing hybrid instruments of €1 billion and $3 billion, with first call dates in January 2022, and 2023 respectively. The company has also launched a capped tender offer on the two above-mentioned hybrid instruments, which we understand will be calibrated so that its aggregate outstanding hybrid capital decreases in a marginal manner, but by no more than 10%. We believe the proposed transaction does not impair our view of the permanence of the hybrid layer within EDF's capital structure. We are assigning our 'BB' issue rating to the proposed security, which we assess as having intermediate equity content, to reflect its subordination and

...+ ElectricitT de France S.A. (EDF) is proposing a junior subordinated hybrid security issuance to partially refinance its existing hybrid instruments of 1 billion and $3 billion, with first call dates in January 2022, and 2023 respectively. + The company has also launched a capped tender offer on the two above-mentioned hybrid instruments, which we understand will be calibrated so that its aggregate outstanding hybrid capital decreases in a marginal manner, but by no more than 10%. + We believe the proposed transaction does not impair our view of the permanence of the hybrid layer within EDF's capital structure. + We are assigning our '##' issue rating to the proposed security, which we assess as having intermediate equity content, to reflect its subordination and optional deferability. PARIS (S&P Global Ratings) Nov. 26, 2019--S&P Global Ratings said today that it had assigned its '##' long-term issue rating to the proposed perpetual, optionally deferrable, and subordinated hybrid capital...

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