S&P rates Solvay note BB+

S&P said it assigned a BB+ rating to Solvay SA’s planned benchmark-size junior subordinated hybrid security.

“We understand that the interest to be paid on the proposed securities will increase by 25 basis points (bps) no earlier than 10.5 years after issuance, then by an additional 75 bps at the second step-up, 20 years after the first reset date. We consider the cumulative 100 bps as a material step-up, which is currently unmitigated by any commitment to replace the respective instruments at that time. This step-up provides an incentive for the issuer to redeem the instrument on the first call date,” S&P said in a press release.

Proceeds will be used to redeem its €500 million hybrid security with a first call date on June 2021.

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