Vattenfall AB's Proposed Hybrid Rated 'BB+'; Equity Content Unaffected

Vattenfall AB has launched a British pound sterling green hybrid instrument that, together with the Swedish krona (SEK) 3.5 billion hybrid instruments issued in May, it will use to replace its two tranches of NC2022 SEK3.0 billion hybrids each. Considering the new instrument alongside the two hybrids issued in May, we expect the equity content of Vattenfall's hybrid layer to remain broadly unchanged. We believe the proposed transaction does not alter our view of the hybrid layer within Vattenfall's capital structure and understand that the company is committed to maintaining about SEK20 billion of hybrid capital on its balance sheet. We assigned our 'BB+' issue rating to the proposed securities, which we assess as having intermediate equity content, to reflect

...June 21, 2021 - Vattenfall AB has launched a British pound sterling green hybrid instrument that, together with the Swedish krona (SEK) 3.5 billion hybrid instruments issued in May, it will use to replace its two tranches of NC2022 SEK3.0 billion hybrids each. - Considering the new instrument alongside the two hybrids issued in May, we expect the equity content of Vattenfall's hybrid layer to remain broadly unchanged. - We believe the proposed transaction does not alter our view of the hybrid layer within Vattenfall's capital structure and understand that the company is committed to maintaining about SEK20 billion of hybrid capital on its balance sheet. - We assigned our '##+' issue rating to the proposed securities, which we assess as having intermediate equity content, to reflect its subordination and optional deferability. STOCKHOLM (S&P Global Ratings) June 21, 2021--S&P Global Ratings today assigned its '##+' long-term issue rating to the 2083, optionally deferrable, and subordinated...

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