Fitch rates Engie securities BBB+

Fitch Ratings said it assigned an expected rating of BBB+ to Engie SA's green callable deeply subordinated capital securities.

The securities qualify for 50% equity credit, Fitch explained.

The obligations under the notes are direct, unconditional, unsecured and lowest ranking subordinated obligations of Engie, the agency said.

The proceeds of the hybrid issue will be used to refinance two hybrid bonds with forthcoming first call dates, Fitch said.

The notes are rated two notches below Engie's long-term issuer default rating given their deep subordination and lower recovery prospects in liquidation or a bankruptcy scenario relative to senior obligations, the agency said.

The notes only rank senior to the claims of equity shareholders, Fitch said.

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