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

Orange S.A. has announced a new €500 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 securities as having intermediate equity content. We are assigning our 'BBB-' issue rating to the proposed junior securities to reflect their subordination and optional deferability. PARIS (S&P Global Ratings) April 29, 2021--S&P Global Ratings today said it assigned its 'BBB-' issue rating to the €500 million junior subordinated hybrid security 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 security as having intermediate equity content

...April 29, 2021 - Orange S.A. has announced a new 500 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 securities as having intermediate equity content. - We are assigning our '###-' issue rating to the proposed junior securities to reflect their subordination and optional deferability. PARIS (S&P Global Ratings) April 29, 2021--S&P Global Ratings today said it assigned its '###-' issue rating to the 500 million junior subordinated hybrid security 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 security as having intermediate equity content until the first call date. We view this as a liability management transaction that will enable the company to refinance its perpetual deeply subordinated hybrid bonds with first...

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