Fitch rates EDF notes BBB-

Fitch Ratings said it assigned Electricite de France's €1 billion of perpetual subordinated notes with a coupon of 7.5% an expected rating of BBB-.

“The proposed notes, which are to be issued under EDF's €50 billion euro medium-term note program, are rated two notches below EDF's senior unsecured rating of BBB+, given their deep subordination and consequently, lower recovery prospects in a liquidation or bankruptcy relative to senior obligations,” Fitch said in a press release.

The agency said it considers the offering credit neutral because it expects the total amount of hybrids in EDF's capital structure to remain broadly stable.

The outlook is stable.

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