Fitch: DONG Energy securities BBB-

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

The proposed securities qualify for 50% equity credit.

Fitch said the expected rating for the proposed capital securities reflects the highly subordinated nature of the notes, considered to have lower recovery prospects in a liquidation or bankruptcy scenario.

The equity credit reflects the structural equity-like characteristics of the instruments including subordination, maturity in excess of five years and deferrable interest coupon payments. Equity credit is limited to 50% given the cumulative interest coupon, a feature considered more debt-like in nature, the agency said.

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