Koninklijke FrieslandCampina N.V.'s Proposed Hybrid Securities Rated 'BB+'

Koninklijke FrieslandCampina plans to issue €300 million of subordinated securities for general corporate purposes. We assess the proposed instrument as having intermediate equity content. We are assigning our 'BB+' issue rating to the hybrid securities, reflecting the subordination of the instrument and optional deferability of the interest payment. PARIS (S&P Global Ratings) Sept. 1, 2020--S&P Global Ratings today assigned its 'BB+' issue rating to the proposed €300 million perpetual subordinated securities to be issued by Koninklijke FrieslandCampina N.V. (FrieslandCampina; BBB/Negative/A-2). We consider that the hybrid securities qualify for intermediate equity content from the issuance date (September 2020) until the first reset date (December 2025) because they meet our criteria in terms of subordination, permanence, and deferability. We arrive at a

...September 1, 2020 - Koninklijke FrieslandCampina plans to issue 300 million of subordinated securities for general corporate purposes. - We assess the proposed instrument as having intermediate equity content. - We are assigning our '##+' issue rating to the hybrid securities, reflecting the subordination of the instrument and optional deferability of the interest payment. PARIS (S&P Global Ratings) Sept. 1, 2020--S&P Global Ratings today assigned its '##+' issue rating to the proposed 300 million perpetual subordinated securities to be issued by Koninklijke FrieslandCampina N.V. (FrieslandCampina; ###/Negative/A-2). We consider that the hybrid securities qualify for intermediate equity content from the issuance date (September 2020) until the first reset date (December 2025) because they meet our criteria in terms of subordination, permanence, and deferability. We arrive at a '##+' issue rating on the hybrid securities by notching down two levels from our '###' issuer credit rating on...

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