S&P rates Iberdrola notes BB+

Standard & Poor's said it assigned a BB+ long-term issue rating to the undated, optionally deferrable and deeply subordinated capital securities being issued by Iberdrola International BV.

The securities benefit from an unconditional and irrevocable guarantee from Iberdrola SA. The transaction volume is subject to market conditions, S&P said.

The agency said it considers the new securities to have intermediate equity content until their first call date in 2018 because they meet the criteria in terms of subordination, permanence and optional deferability during this period.

The BB+ rating reflects a notching down from the BBB long-term corporate credit rating on the guarantor Iberdrola, S&P said.

The two-notch differential reflects the subordination and payment flexibility of the notes, the agency said.

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