Orange S.A.'s Junior Subordinated Hybrid Instrument Rated 'BBB-' And Assessed As Having Intermediate Equity Content

Orange S.A. has announced the launch of a new €700 million junior subordinated hybrid instrument. The group intends to use the proceeds to fund a tender offer on existing hybrids with first calls in 2021, 2022, and 2023. We assess the proposed junior hybrid instrument as having intermediate equity content. We are assigning our 'BBB-' issue rating to the proposed junior hybrid instrument to reflect its subordination and optional deferability. PARIS (S&P Global Ratings) Oct. 14, 2020--S&P Global Ratings today assigned its 'BBB-' issue rating to the €700 million junior subordinated hybrid instrument to be issued by French telecom operator Orange S.A. (BBB+/Stable/A-2). The rating reflects our notching for subordination and optional interest deferability. We assess the instrument as having

...October 14, 2020 - Orange S.A. has announced the launch of a new 700 million junior subordinated hybrid instrument. - The group intends to use the proceeds to fund a tender offer on existing hybrids with first calls in 2021, 2022, and 2023. - We assess the proposed junior hybrid instrument as having intermediate equity content. - We are assigning our '###-' issue rating to the proposed junior hybrid instrument to reflect its subordination and optional deferability. PARIS (S&P Global Ratings) Oct. 14, 2020--S&P Global Ratings today assigned its '###-' issue rating to the 700 million junior subordinated hybrid instrument to be issued by French telecom operator Orange S.A. (###+/Stable/A-2). The rating reflects our notching for subordination and optional interest deferability. We assess the instrument as having intermediate equity content until the first call date. We view this as a liability management transaction that will enable Orange to replace portions of its existing 1 billion hybrid...

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