Moody's rates Fortis Hybrid perpetuals A3

Moody's Investors Service said it assigned an A3 rating to the perpetual securities to be issued by Fortis Hybrid Financing, a special purpose vehicle incorporated under the laws of Luxembourg, and owned jointly by Fortis SA/NV and Fortis NV.

The outlook is stable.

Moody's said that the A3 rating assigned to the perpetual subordinated securities to be issued by Fortis Hybrid Financing is based on the support agreement and subordinated guarantee from its two parent companies, Fortis SA/NV and Fortis NV, as well as the financial fundamentals of and reliance on repayment from the parent companies' subsidiaries including Fortis Bank SA/NV and Fortis' insurance businesses.

Moody's added that the rating for the subordinated perpetual callable securities reflects the securities' deeply subordinated nature ranking senior only to the issuer's and guarantors' ordinary shares and the issuer's right to defer interest payment.

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