Fitch rates Accor’s new hybrid BB

Fitch Ratings said it assigned Accor SA’s proposed €500 million undated non-call 5.5-year deeply subordinated fixed-to-reset rate bond an expected rating of BB.

“The proposed hybrid issue will be deeply subordinated and rank senior only to Accor’s share capital, while coupon payments can be deferred at the discretion of the issuer,” Fitch said in a press release.

Proceeds will be used to finance Accor’s tender for “€900 million hybrid instrument (EUR514 million outstanding), while the group has stated their intention to maintain the current magnitude of hybrid debt (around €1 billion) in its capital structure,” Fitch said.

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