S&P gives Grand City bond BBB-

S&P said it assigned its BBB- long-term issue rating to the perpetual, optionally deferrable, and subordinated hybrid capital security to be issued by Grand City Properties SA.

The agency reached the BBB- rating by subtracting two notches from the BBB+ issuer rating with a notch for subordination and another for payment flexibility to reflect that the deferral of interest is optional, S&P said.

“We understand that the company has successfully placed €700 million with a coupon of 1.5%. We expect GCP’s overall hybrid capacity not to exceed our 15% hybrid capitalization rate threshold, given the company’s commitment regarding its total hybrid capital,” S&P said in a press release.

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