S&P rates Southern junior notes BBB

Standard & Poor's said it assigned its BBB long-term issue rating to Southern Co.'s series 2015A junior subordinated notes due Oct. 15, 2075.

The agency classifies these hybrid securities being issued by the Atlanta-based utility holding company as having intermediate (50%) equity content.

The issue rating is notched down two notches from the A- issuer credit rating to reflect the instrument's subordination to more senior obligations and deferability of its interest payment.

The outlook is negative.

Fitch applies BBB+ to Southern junior notes

Fitch Ratings said it assigned a BBB+ rating, on Rating Watch Negative, to Southern Co.’s series 2015A junior subordinated notes due Oct. 15, 2075.

Net proceeds will be used to pay a portion of outstanding short-term debt, which stood at $524 million as of Sept. 30, and for general corporate purposes.

The debentures are junior and subordinated in right of payment and upon liquidation to all of Southern's senior debt. Southern may defer interest payments on the debentures on one or more occasions for up to 10 consecutive years per deferral period.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.