Fitch assigns Accor notes BB

Fitch Ratings said it assigned Accor SA's (BBB-/stable) proposed deeply subordinated fixed- to reset-rate notes a BB(EXP) expected rating.

The agency applied 50% equity credit treatment to this issue.

The proposed hybrid issue will be deeply subordinated and ranks senior only to Accor's share capital, while coupon payments can be deferred at the discretion of the issuer. As a result, the BB(EXP) rating is two notches below Accor's BBB- long-term issuer default rating, reflecting the notes' higher loss severity and risk of non-performance relative to senior obligations.

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