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

Orange S.A. has issued a new €1 billion junior subordinated hybrid instrument. The group intends to use the proceeds to fund a tender offer on existing hybrids with the first call in February 2024. We assess the proposed junior securities as having intermediate equity content. We assigned our 'BBB-' issue rating to the proposed junior securities to reflect their subordination and optional deferability. PARIS (S&P Global Ratings) April 13, 2023--S&P Global Ratings today assigned its 'BBB-' issue rating to the €1 billion junior subordinated hybrid security issued by French telecommunications 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 until the first call date. We

...April 13, 2023 - Orange S.A. has issued a new 1 billion junior subordinated hybrid instrument. - The group intends to use the proceeds to fund a tender offer on existing hybrids with the first call in February 2024. - We assess the proposed junior securities as having intermediate equity content. - We assigned our '###-' issue rating to the proposed junior securities to reflect their subordination and optional deferability. PARIS (S&P Global Ratings) April 13, 2023--S&P Global Ratings today assigned its '###-' issue rating to the 1 billion junior subordinated hybrid security issued by French telecommunications 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 enables the company to refinance its existing perpetual deeply subordinated hybrid bonds with first call in February...

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