Moody's gives GDF SUEZ notes A3

Moody's Investors Service said it assigned a provisional A3 long-term rating to GDF SUEZ SA's proposed issuance of euro five-year non-call and euro 10-year non-call undated deeply subordinated fixed rate resettable notes.

The outlook is stable.

The size and completion of the notes remains subject to market conditions.

The provisional A3 rating is two notches below GDF SUEZ's senior unsecured rating of A1. Moody's said the rating differential reflects the key features of the hybrid, namely that (a) it is a deeply subordinated instrument; (b) it is perpetual; (c) GDF SUEZ can opt to defer coupons on a cumulative basis; and (d) there is no step-up in coupon prior to year 10 and the step-up will not exceed a total of 100 basis points thereafter.

The rating is in line with that of the existing €1.7 billion of perpetual hybrid notes issued in 2013.

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