ORIX Corp.'s Subordinated Bonds Assessed As Having Intermediate Equity Content

TOKYO (S&P Global Ratings) Feb. 12, 2020--S&P Global Ratings today said it will classify ORIX Corp.'s (A-/Negative/--) proposed subordinated bonds as having intermediate equity content until the first callable date in 2025 for series one and until the first callable date in 2030 for series two. ORIX today disclosed its plan to issue the subordinated bonds. The issue amount is not yet fixed. The characteristics of the subordinated bonds--the issuer's option to defer interest payments, sufficient permanence, and subordination in liquidation or bankruptcy proceedings--meet our standards for deeming them as having intermediate equity content. ORIX retains the option to defer interest payments on the bonds. Any outstanding deferred interest is cumulative and will be settled in cash if the borrower

...February 11, 2020 TOKYO (S&P Global Ratings) Feb. 12, 2020--S&P Global Ratings today said it will classify ORIX Corp.'s (A-/Negative/--) proposed subordinated bonds as having intermediate equity content until the first callable date in 2025 for series one and until the first callable date in 2030 for series two. ORIX today disclosed its plan to issue the subordinated bonds. The issue amount is not yet fixed. The characteristics of the subordinated bonds--the issuer's option to defer interest payments, sufficient permanence, and subordination in liquidation or bankruptcy proceedings--meet our standards for deeming them as having intermediate equity content. ORIX retains the option to defer interest payments on the bonds. Any outstanding deferred interest is cumulative and will be settled in cash if the borrower pays a dividend on its stock or interest on debt that is pari passu with these bonds. However, this condition does not affect categorization of the equity content of the bonds under...

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