S&P rates Danone hybrids BBB-

S&P said it assigned a BBB- rating to the proposed perpetual, optionally deferrable and subordinated hybrid notes to be issued by Danone.

The proceeds will be used from the notes for general corporate purposes, including the refinancing of debt, S&P said.

The completion and size of the transaction will be subject to market conditions, but the agency said it understands that the issuance should be about €1 billion.

This is within the 15% adjusted capitalization ratio threshold, S&P said.

The proposed notes are classified as having intermediate equity content until their first call date in 2023 because they meet the criteria in terms of their subordination, permanence and optional deferability during this period, the agency said.

The rating on the proposed notes reflects a two-notch deduction from the BBB+ issuer credit rating on Danone, S&P said.

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