S&P rates Rakuten notes BB

S&P said it has assigned BB issue credit ratings to Rakuten Group Inc.'s planned dollar- and euro-denominated perpetual subordinated bonds and placed the ratings on CreditWatch with negative implications.

“We placed them on CreditWatch because our BBB- long-term issuer credit rating on the company is on CreditWatch negative,” the agency said in a press release.

The ratings on the subordinated bonds are two notches lower than the issuer credit rating on Rakuten.

“The two-notch differential reflects our notching methodology, whereby we deduct one notch for subordination of the bonds and one additional notch for the issuer's option to defer interest payments. In Rakuten's case, we incorporate into our ratings on the issuer and its hybrid bonds the benefits it reaps from its control of financial subsidiaries with somewhat high credit quality,” S&P said.

© 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.