Swedish Utility Vattenfall AB's Proposed Junior Subordinated Securities Assigned 'BB+' Rating

OVERVIEW Swedish state-owned multi-utility Vattenfall AB is proposing to issue junior subordinated hybrid securities. We assess the proposed securities as having intermediate equity content. We are assigning our 'BB+' issue rating to the proposed securities to reflect their subordination and optional deferability. STOCKHOLM (Standard&Poor's) Nov. 13, 2015--Standard&Poor's Ratings Services today assigned its 'BB+' long-term issue rating to the proposed $400 million long-dated, optionally deferrable, and subordinated hybrid capital securities to be issued by Vattenfall AB (BBB+/Negative/A-2), a Sweden-based multi-utility. We consider the proposed securities to have "intermediate" equity content until the first call date in 2023, because they meet our criteria in terms of subordination, permanence, and deferability at the company's discretion. We understand that the

...OVERVIEW + Swedish state-owned multi-utility Vattenfall AB is proposing to issue junior subordinated hybrid securities. + We assess the proposed securities as having intermediate equity content. + We are assigning our '##+' issue rating to the proposed securities to reflect their subordination and optional deferability. STOCKHOLM (Standard & Poor's) Nov. 13, 2015--Standard & Poor's Ratings Services today assigned its '##+' long-term issue rating to the proposed $400 million long-dated, optionally deferrable, and subordinated hybrid capital securities to be issued by Vattenfall AB (###+/Negative/A-2), a Sweden-based multi-utility. We consider the proposed securities to have "intermediate" equity content until the first call date in 2023, because they meet our criteria in terms of subordination, permanence, and deferability at the company's discretion. We understand that the proposed instrument will be used for general corporate purposes. The issuance of the hybrid securities does not affect...

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