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

Vattenfall AB has launched a new dual-tranche green hybrid instrument to fully replace its two tranches of NC2022 Swedish krona (SEK) 3 billion hybrids each. At the same time, Vattenfall is launching a tender offer on the two abovementioned hybrids so that, together with the new issue, the equity content of its hybrid layers remains stable. We believe the proposed transaction does not impair 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 are assigning our 'BB+' issue rating to the proposed securities, which we assess as having intermediate equity content, to reflect its subordination and optional deferability. STOCKHOLM

...May 10, 2021 - Vattenfall AB has launched a new dual-tranche green hybrid instrument to fully replace its two tranches of NC2022 Swedish krona (SEK) 3 billion hybrids each. - At the same time, Vattenfall is launching a tender offer on the two abovementioned hybrids so that, together with the new issue, the equity content of its hybrid layers remains stable. - We believe the proposed transaction does not impair 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 are assigning 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) May 10, 2021--S&P Global Ratings today assigned its '##+' long-term issue rating to the proposed 2083, optionally deferrable, and subordinated hybrid capital securities to be issued by Vattenfall...

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