Fitch gives Bayer hybrids BBB-

Fitch Ratings said it assigned Bayer AG’s proposed €1.75 billion issue of subordinated resettable fixed-rate notes due November 2079 an expected rating of BBB-, two notches below Bayer’s rating.

The proposed hybrid will be deeply subordinated, rank equally with existing hybrids and senior only to Bayer’s share capital, while coupon payments can be deferred at the discretion of the issuer, the agency said.

Proceeds will be used to refinance a €1.75 billion hybrid due 2075 and callable next July.

Bayer will sell the securities in two tranches, one callable in 2025 and the other callable in 2027.

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