Orange S.A. 'BBB' TDIRA Bond Rating Withdrawn

PARIS (S&P Global Ratings) June 29, 2020--S&P Global Ratings today withdrew its 'BBB' issue rating on Orange S.A.'s junior subordinated TDIRA bonds, which had been maintained in error. The TDIRAs are perpetual bonds that were issued in 2003 and are redeemable for Orange S.A. shares. Due to changes in our criteria since then, most recently expressed in our 2014 "Imputed Promises" criteria (see "Principles For Rating Debt Issues Based On Imputed Promises," published Dec. 19, 2014), the issue rating should have been withdrawn. This is because the TDIRAs include principal repayments linked to the Orange equity price. The bonds convert into shares through a ratio that does not protect bondholder principal repayment (in terms of the value of the shares

...June 29, 2020 PARIS (S&P Global Ratings) June 29, 2020--S&P Global Ratings today withdrew its '###' issue rating on Orange S.A.'s junior subordinated TDIRA bonds, which had been maintained in error. The TDIRAs are perpetual bonds that were issued in 2003 and are redeemable for Orange S.A. shares. Due to changes in our criteria since then, most recently expressed in our 2014 "Imputed Promises" criteria (see "Principles For Rating Debt Issues Based On Imputed Promises," published Dec. 19, 2014), the issue rating should have been withdrawn. This is because the TDIRAs include principal repayments linked to the Orange equity price. The bonds convert into shares through a ratio that does not protect bondholder principal repayment (in terms of the value of the shares delivered at conversion) at least at a par minimum....

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