S&P assigns Aroundtown notes BBB-

S&P said it assigned its BBB- issue rating to Aroundtown SA's subordinated hybrid notes offered to existing investors under the company's exchange offer.

Aroundtown is offering to exchange six of its perpetual subordinated hybrid notes with a current value of €2.4 billion.

“We rate the proposed perpetual subordinated hybrid notes two notches below the issuer credit rating on Aroundtown. The rating difference reflects our notching methodology, which calls for deducting one notch for subordination because our long-term rating on Aroundtown is investment-grade (BBB- or higher); and an additional notch for payment flexibility, because the option to defer interest stands with the issuer,” S&P said in a press release.

The outlook is negative.

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