S&P assigns BT Group notes BB+

S&P said it assigned its BB+ issue ratings to the dollar-denominated junior subordinated hybrid securities to be issued by British Telecommunications plc, a wholly owned subsidiary of BT Group plc.

“The ratings reflect our notching for subordination and optional interest deferability,” S&P said in a press release. The agency said it deducted two notches from BT’s BBB issuer rating to arrive at the BB+ rating.

“BT views the issuance of the securities as a strategic and prudent tool to strengthen its balance sheet, supporting senior creditors and the issuer credit rating on BT. We understand BT intends to maintain or replace these securities as a long-term form of capital on its balance sheet,” S&P said in a press release.

The outlook is stable.

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