Moody's: BG Energy securities Baa1

Moody's Investors Service said it assigned a provisional Baa1 long-term rating to the proposed issuance of capital securities by BG Energy Capital plc and guaranteed by BG Energy Holdings Ltd.

The outlook is stable.

The provisional Baa1 is two notches below the senior unsecured rating of A2 for BG Energy Holdings.

This reflects the features of the securities, which (a) is very long-dated; (b) includes issuer call options in November 2017, in November 2022 with a 25 basis point step-up, and at every annual interest payment date thereafter including in November 2037 with a 100 basis point step-up; (c) is very deeply subordinated; and (d) provides BG Energy Capital with the option to defer coupons on a cumulative basis.

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