Fitch gives BBB to Iberdrola green debt

Fitch Ratings said it assigned a BBB(EXP) expected rating to Iberdrola International BV's proposed unsized green callable deeply subordinated capital securities.

The proposed securities would qualify for 50% equity credit.

The proposed notes will be unconditionally and irrevocably guaranteed by Iberdrola SA (BBB+/stable) on a subordinated basis.

The issuance of the hybrid debt is part of the €2 billion of debt-related credit protection measures that the management announced in February and proceeds will be used to finance and/or refinance, in whole or in part, eligible green projects.

Fitch said the proposed notes are rated two notches below Iberdrola's A- senior unsecured rating given their deep subordination and consequently, lower recovery prospects in a liquidation or bankruptcy scenario relative to senior obligations.

The notes only rank senior to the claims of equity shareholders.

© 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.