Fitch gives Enel notes BBB

Fitch Ratings said it gave Enel SpA’s proposed perpetual callable deeply subordinated capital securities an expected BBB rating.

“The hybrid notes are deeply subordinated and will rank senior only to Enel’s share capital, while coupon payments can be deferred at the option of the issuer. These features are reflected in the BBB(EXP) rating, which is two notches lower than Enel’s senior unsecured rating. The 50% equity credit reflects the hybrid’s cumulative interest coupon, a feature that is more debt-like in nature,” the agency said in a press release.

Enel will use a portion of the proceeds to refinance the £250 million amount outstanding of the £500 million hybrid callable in September.

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