S&P: Koninklijke hybrids BB

Standard & Poor's said it assigned a BB long-term issue rating to the proposed, optionally deferrable and deeply subordinated hybrid capital securities to be issued by Koninklijke KPN NV.

The instruments are undated in case of euro-denominated instruments and dated 60 years in case of sterling-denominated instruments, S&P said.

The transaction volume and currency-denomination of the hybrid capital securities is subject to market conditions, but will not exceed an equivalent of €2 billion, the agency said.

S&P said it considers the proposed hybrid capital securities to have intermediate equity content until their first-call dates, which are not expected to be before 2018 because they meet hybrid-capital criteria in terms of their subordination, permanence and optional deferability during this period.

The BB issue rating reflects a notching down from the BBB- long-term corporate credit rating on the company, the agency said.

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