S&P assigns Alliander securities A

Standard & Poor's said it assigned its A issue rating to the proposed perpetual optionally deferrable and subordinated hybrid capital securities to be issued by Alliander NV (AA-/stable/A-1+).

The issuer intends to use the proceeds to tender and replace its existing €500 million subordinated perpetual capital securities, issued in November 2010.

S&P said it arrived at the A issue rating on the proposed securities by notching down from its aa- standalone credit profile on Alliander.

The two-notch differential between the issue rating and the standalone credit profile reflects the agency's notching methodology, which calls for: a one-notch deduction for subordination because the corporate credit rating on Alliander is investment grad; and an additional one-notch deduction for payment flexibility to reflect that the deferral of interest is optional.

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