CMS Energy Corp. (CMS) is issuing junior subordinated notes due 2078, a form of hybrid security. We are assigning a 'BBB-' rating to the junior subordinated notes, two notches below the issuer credit rating. We are also assessing the equity content of the notes as intermediate (50% equity and 50% debt). We are affirming our ratings on CMS, including the 'BBB+' issuer credit rating. The outlook is stable. The stable outlook reflects our expectation that management will continue to focus on its core utility operations and reach constructive regulatory outcomes while maintaining funds from operations (FFO) to debt of about 14%-16%. On March 5, 2018, S&P Global Ratings assigned a 'BBB-' rating to CMS Energy Corp.'s (CMS) junior subordinated notes
