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

PARIS (S&P Global Ratings) Sept. 13, 2019--S&P Global Ratings today assigned its 'BBB-' issue rating to the €500 million 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 until the first call date. We view this as a liability management transaction that will enable Orange to replace its existing €500 million hybrid, which was issued in 2014 and has a first call date in February 2020. Because of this, we now view the equity content of the February 2020 hybrid as minimal, but this does not change our view of Orange's intent regarding other hybrids in

...September 13, 2019 PARIS (S&P Global Ratings) Sept. 13, 2019--S&P Global Ratings today assigned its '###-' issue rating to the 500 million 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 Orange to replace its existing 500 million hybrid, which was issued in 2014 and has a first call date in February 2020. Because of this, we now view the equity content of the February 2020 hybrid as minimal, but this does not change our view of Orange's intent regarding other hybrids in its capital structure. We categorize the proposed security as having intermediate equity content because it is subordinated in liquidation to all Orange's senior debt obligations, cannot be called for seven and a half years, and is...

Ratings Action