Moody's rates Alliander securities A3

Moody's Investors Service said it assigned a provisional A3 long-term rating to the proposed issuance of reset perpetual capital securities by Alliander NV.

The outlook is stable.

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

The provisional A3 rating is one notch lower than Alliander's a2 standalone baseline credit assessment, and three notches lower than Alliander's Aa3 senior unsecured rating. This reflects the features of this security (it is perpetual, deeply subordinated and Alliander can opt to defer coupons on a cumulative basis); and that the Aa3 senior unsecured rating benefits from two notches of uplift based on Moody's expectations for potential extraordinary support from its Dutch province and municipality owners, the agency said.

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