Fitch rates Iberdrola securities BBB

Fitch has assigned Iberdrola International BV's proposed dual-tranche green non-call undated deeply subordinated securities an expected rating of BBB.

The notes will be guaranteed by Iberdrola SA on a subordinated basis. “They are rated two notches below Iberdrola's senior unsecured rating of A- given their deep subordination and consequently lower recovery prospects in a liquidation or bankruptcy scenario relative to senior obligations. The notes only rank senior to the claims of equity shareholders. The senior unsecured rating benefits from a one-notch uplift from the IDR due to the group's defensive business mix (more than 50% regulated earnings),” Fitch said in a press release.

Fitch also affirmed Iberdrola SA’s BBB+ issuer rating after the agreement to buy PNM Resources Inc. was announced, the agency said.

The outlook is stable.

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