S&P rates Grand City securities BBB-

S&P said it assigned its BBB- long-term issue rating to the €350 million subordinated perpetual fixed-rate optionally deferrable perpetual capital security issued by Grand City Properties SA (BBB+/stable/A-2).

The agency said it classifies the security as having intermediate equity content until its first reset date in October 2023 because it meets S&P’s criteria in terms of subordination, permanence and deferability at the company's discretion during this period, in line with the company’s outstanding perpetual notes.

S&P said it arrived at the issue rating by notching down from the BBB+ long-term issuer credit rating. The two-notch differential reflects one notch for subordination, because the long-term ICR is investment grade and an additional notch for payment flexibility, to reflect that the deferral of interest is optional.

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