Fitch rates RWE notes A

Fitch Ratings said it assigned the €1.75 billion perpetual hybrid subordinated notes issued by RWE AG a rating of A. RWE's senior unsecured rating is AA- and short-term issuer default rating is F1.

The outlook is stable.

The hybrid security is fully subordinated and ranks senior only to RWE's share capital, while coupon payments can be deferred under certain circumstances. The security qualifies for equity credit, Fitch said.

Fitch said it rated the hybrid two notches down from RWE's long-term issuer default rating of A+ based on standard loss absorption provisions and other criteria.

The agency then provided a one-notch rating uplift to the hybrid due to the above-average recovery prospects typical of integrated utilities, according to its criteria, the agency said.

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