S&P rates Wienerberger bonds BB+

Standard & Poor's said it assigned a BB+ rating to Wienerberger AG's proposed optionally deferrable junior subordinated hybrid undated bonds, which are expected to be issued in the amount of €400 million.

The outlook is stable.

The agency said it considers the combination of a 1% margin step-up on the 10th anniversary of the life of the bonds and of the right for Wienerberger to call the notes at that point (as well as at any floating-rate interest payment date thereafter) as a negative equity-content factor.

Nevertheless, this is mitigated by a replacement clause in the terms and conditions of the notes, under which the company has expressed its intention, if it chooses to call the current issue, to use the proceeds from securities that are pari passu with, or junior to, the called bonds, or by common equity issued by Wienerberger or a financial vehicle, S&P said.

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