Moody’s gives BHP Billiton notes A3

Moody's Investors Service said it today assigned an A3 rating to the proposed new subordinated notes to be issued by BHP Billiton subsidiaries, BHP Billiton Finance (USA) Ltd. and BHP Billiton Finance Ltd.

The outlook is stable.

The size and completion of the hybrid remain subject to market conditions.

The A3 rating assigned to the new hybrid notes is two notches below the BHP Billiton Group's (BHP Billiton Ltd. and BHP Billiton plc) A1 long-term issuer ratings. This reflects Moody's expectation that the new hybrid securities will have a deeply subordinated ranking in relation to the existing senior unsecured backed obligations of BHP Billiton and its subsidiaries, while the new hybrid securities will be senior to common shares.

The agency expects the new deeply subordinated securities will have maturities of at least 60 years and will be issued in several tranches with differing non-call periods. It also expects BHP Billiton may opt to defer coupon payments on a cumulative basis.

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