French Energy Company Electricite de France S.A.'s Proposed Hybrid Rated 'B+'

Electricite de France S.A. (EDF) intends to issue unsecured deeply subordinated hybrid notes and will use the proceeds for replacement and for general purposes. The company also announced a tender offer on its $1.5 billion subordinated hybrid instrument with a first call date on Jan. 22, 2024 (the dollar hybrid). Even if issuance did not reach the repurchased amount, in the specific case of EDF we consider the conversion of the obligation convertible en action nouvelle ou existante (OCEANEs) as contributing to replacement, so that we expect to maintain the outstanding hybrid stack's intermediate equity content. We assigned our 'B+' issue rating to the proposed security to reflect its subordination and optional deferability and assess it as having intermediate equity

...- Electricite de France S.A. (EDF) intends to issue unsecured deeply subordinated hybrid notes and will use the proceeds for replacement and for general purposes. - The company also announced a tender offer on its $1.5 billion subordinated hybrid instrument with a first call date on Jan. 22, 2024 (the dollar hybrid). - Even if issuance did not reach the repurchased amount, in the specific case of EDF we consider the conversion of the obligation convertible en action nouvelle ou existante (OCEANEs) as contributing to replacement, so that we expect to maintain the outstanding hybrid stack's intermediate equity content. - We assigned our 'B+' issue rating to the proposed security to reflect its subordination and optional deferability and assess it as having intermediate equity content. PARIS (S&P Global Ratings) June 8, 2023--S&P Global Ratings today assigned its 'B+' long-term issue rating to the perpetual, optionally deferrable, and subordinated hybrid capital security issued in U.S. dollars...

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