S&P rates Mercury NZ bonds BB+

S&P said it assigned a BB+ long-term issue credit rating to the proposed subordinated capital bonds to be issued by Mercury NZ Ltd.

The agency said it rated the capital bonds two notches lower than Mercury NZ's stand-alone credit profile of BBB and three notches lower than the issuer credit rating of BBB+ on the company.

This is to reflect the bonds' subordinated status and optional interest deferability, S&P said.

The ratings also consider the instrument's subordinated recovery position relative to senior unsecured creditors of the company, including Mercury NZ's bank debt, senior bonds and U.S. private placement notes, the agency said.

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