S&P rates EDP green notes BB+

S&P said it assigned its BB+ issue rating to the planned long-term dated, optionally deferrable and subordinated hybrid capital securities to be sold by EDP - Energias de Portugal SA. The offering amount remains subject to market conditions.

The rating is based on EDP’s BBB rating. The agency said it subtracts a notch for subordination and another for the flexibility to defer interest.

“We expect EDP's issuance to be a dual tranche offering, and anticipate that hybrids outstanding receiving equity credit will increase from the current €2.5 billion but represent less than 15% of EDP's total capitalization,” S&P said in a press release.

EDP will use the proceeds to finance or refinance, in whole or in part, its eligible green project portfolio, in particular its renewable wind and solar projects.

“The bond's green features do not affect our credit assessment of the instruments,” S&P said.

The outlook is stable.

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