Spanish Utility Iberdrola's Proposed Hybrid Instrument Rated 'BBB-'

Iberdrola S.A. has announced the launch of new subordinated hybrid instruments, which will be issued by its finance subsidiary Iberdrola Finanzas S.A.U. We assess the proposed instrument as having intermediate equity content. We assigned our 'BBB-' issue rating to the proposed security to reflect its subordination and optional deferability. The review of the gas clawback in Spain, announced Oct. 26, 2021, will increase the headroom on the issuer credit rating on Iberdrola over 2021-2022. This contrasts with the previous expectation of a 300-basis point (bps) contraction on funds from operations (FFO) to debt, as adjusted by S&P Global Ratings. PARIS (S&P Global Ratings) Nov. 9, 2021--S&P Global Ratings today assigned its 'BBB-' long-term issue rating to the proposed undated, optionally

...November 9, 2021 - Iberdrola S.A. has announced the launch of new subordinated hybrid instruments, which will be issued by its finance subsidiary Iberdrola Finanzas S.A.U. - We assess the proposed instrument as having intermediate equity content. - We assigned our '###-' issue rating to the proposed security to reflect its subordination and optional deferability. - The review of the gas clawback in Spain, announced Oct. 26, 2021, will increase the headroom on the issuer credit rating on Iberdrola over 2021-2022. This contrasts with the previous expectation of a 300-basis point (bps) contraction on funds from operations (FFO) to debt, as adjusted by S&P Global Ratings. PARIS (S&P Global Ratings) Nov. 9, 2021--S&P Global Ratings today assigned its '###-' long-term issue rating to the proposed undated, optionally deferrable, subordinated hybrid capital securities to be issued by Iberdrola S.A. (###+/Stable/A-2), through its financing subsidiary Iberdrola Finanzas S.A.U. We understand the issuance...

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