Moody's assigns Ba1 to Unibail note

Moody's Investors Service said it assigned Unibail-Rodamco-Westfield SE a Ba1 backed junior subordinate rating to its planned issuance of at least €500 million of deeply subordinated perpetual fixed-rate resettable notes following an exchange offer for the first callable tranche of €1.25 billion (PERP-NC23) out of the total outstanding €2 billion of backed junior subordinate issued in 2018. Unibail-Rodamco-Westfield NV, an intermediate holding company, will guarantee the notes.

The offering as proposed above has no impact on Unibail's existing Baa2 long-term issuer rating, the Ba1 backed junior subordinate rating and the basket C (50%) equity treatment on the company's other hybrid notes and the respective stable outlook, the agency said.

"While the proposed transaction is credit neutral, we recognize that it also reflects Unibail's commitment to the existing hybrid capital in its funding structure as well as a proactive management of the first callable tranche amounting to €1.25 billion under the company's existing hybrid notes, totaling €2 billion. A successful execution of the transaction will also be reassuring under the current volatile market environment," said Ana Luz Silva, a Moody's vice president, senior analyst and lead analyst for Unibail, in a press release.

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