S&P rates Arkema notes BBB-

S&P said it assigned a BBB- long-term issue rating to the proposed hybrid capital securities to be issued by Arkema SA.

The amount of the new hybrid is subject to market conditions, the agency said.

The proceeds will be used to refinance partly Arkema's €700 million hybrid issued in 2014 with a first call date in October 2020, S&P said.

The agency said it believes the remaining existing hybrid will stay on the balance sheet until October 2020, which is its first call date. The company intends to maintain the hybrid capital in its funding structure, S&P noted.

The rating on the hybrids is notched down from the BBB+ issuer credit rating on Arkema, reflecting one notch for subordination and another notch for payment flexibility because the deferral of interest is optional, the agency said.

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