Fitch rates Orsted green bonds BBB-, notes BBB+

Fitch Ratings said it assigned Orsted A/S' (formerly DONG Energy A/S) €500 million proposed green callable subordinated capital securities an expected rating of BBB-(EXP).

The proposed securities qualify for 50% equity credit.

The agency also assigned Orsted's planned €500 million to €750 million senior unsecured notes due 2029 an expected senior unsecured rating of BBB+(EXP).

Proceeds from the hybrid issue are expected to be used to redeem Orsted's existing €500 million hybrid issue, issued in 2013, in July 2018 and the proceeds from the senior unsecured issue will be partly used to buy back existing senior unsecured bonds and for green projects in accordance with Orsted's Green Bond Framework.

The proposed notes are rated two notches below Orsted's long-term issuer default rating (BBB+/stable) given their deep subordination and consequently, lower recovery prospects in a liquidation or bankruptcy scenario relative to senior obligations, Fitch explained. The notes only rank senior to the claims of equity shareholders.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.