S&P gives Entergy Texas preferreds BBB-

S&P said it assigned a BBB- rating to Entergy Texas Inc.’s series A perpetual preferred shares.

“We classify these notes as hybrid securities with intermediate equity content (50%). Our intermediate equity treatment is premised on the instrument’s permanence, subordination, and deferability features. We rate the securities two notches below our BBB+ long-term issuer credit rating on ETI to reflect their subordination and the company’s ability to defer dividend payments on the notes,” said S&P in a news release.

Proceeds will be used for general corporate purposes.

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