Moody's assigns Baa3 to Orange hybrids

Moody's Ratings said it assigned a Baa3 long-term rating to Orange SA's €700 million of undated non-call deeply junior subordinate fixed to reset hybrid bond.

All other ratings of Orange and its guaranteed subsidiaries, as well as the positive outlook, remain unaffected, the agency said.

"The Baa3 rating assigned to the hybrid bond 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," said Carlos Winzer, a Moody's senior vice president and lead analyst for Orange, in a press release.

Orange plans to use the hybrid bond to partially refinance outstanding hybrid securities.

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