Moody's assigns Orange hybrids Baa3

Moody's Investors Service said it assigned a Baa3 long-term rating to Orange's proposed €500 million of perpetual eight-year non-call deeply junior subordinated hybrid bonds. Orange will issue the bonds under its €35 billion medium-term note program.

"The Baa3 rating assigned to the hybrid bonds is two notches below Orange's senior unsecured rating of Baa1, primarily because the bonds are deeply subordinated to other debt and are only senior to common equity in the company's capital structure," explained Carlos Winzer, a Moody's senior vice president and lead analyst for Orange, in a press release.

Orange plans to use the proceeds to refinance other hybrid securities.

All of Orange’s ratings, those of its guaranteed subsidiaries and the stable outlook remain unchanged, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.