Moody's rates Adecco notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to Adecco International Financial Services BV's planned guaranteed subordinated fixed-to-reset rate securities and a Baa1 rating to the proposed new senior unsecured notes to be issued under the company's EMTN program.

“The Baa3 rating assigned to the proposed hybrid notes is two notches below Adecco's long-term issuer rating of Baa1, reflecting the deeply subordinated nature compared to the company's senior unsecured debt. The proposed hybrid notes will rank senior only to equity, will mature in 2082, and the company can opt to defer coupons on a cumulative basis,” the agency said in a press release.

Concurrently, Moody's affirmed Adecco Group AG's Baa1 long term issuer rating and the Baa1 senior unsecured debt ratings of Adecco and its guaranteed subsidiaries.

Adecco plans to use the proceeds to help it finance the €2.2 billion acquisition of AKKA Technologies.

The outlook is stable.

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