S&P corrects Corning convertible preferred rating to BBB-

S&P said it corrected its issue-level rating on Corning Inc.'s $2.3 billion convertible preferred stock, series A, to BBB- from BBB.

“The action is based on our review of the company's incorporation amendment documentation. We identified that the $2.3 billion convertible preferred stock series A does contain an interest deferral feature, which would lead to our lowering the issue-level rating on the preferred stock one notch from our BBB+ corporate credit rating on Corning,” S&P said in a news release.

“This downward notching is in addition to a downward notch previously applied to the issue-level rating on the preferred stock because of its lower repayment priority compared to the company's unsecured debt.”

There is no change to S&P’s BBB+ corporate credit rating on Corning or the issue-level rating on the company's senior unsecured notes outstanding.

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