S&P assigns BB to Telefonica notes

S&P said it assigned its BB long-term issue rating to the planned hybrid securities to be issued by Telefonica Europe BV, the Dutch finance subsidiary of Telefonica SA, rated BBB-, which will guarantee them.

The rating is the same as those on Telefonica Europe’s outstanding junior subordinated debt.

Telefonica plans to use the proceeds to refinance partially or fully its €1.3 billion undated six-year non-call deeply subordinated guaranteed fixed-rate reset securities with a first call date on Dec. 14. The company said it might also repurchase some of these notes via a tender offer.

The outlook is stable.

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