Standard & Poor’s Review of Corporate Hybrid Equity

Standard & Poor’s takes various rating actions on review of corporate hybrid equity.

Centrica plc notes that Standard & Poor’s Rating Services yesterday revised the equity content assigned on several hybrid capital instruments issued by corporate issuers to "minimal" from "intermediate." This includes Centrica’s €750,000,000 Subordinated Resettable Fixed Rate Notes due 2076 and £450,000,000 Subordinated Resettable Fixed Rate Notes due 2075.

Standard & Poor’s have stated that the change will have no impact on Centrica’s rating or outlook.

Centrica remains committed to hybrid capital, and will look to ensure compliance with rating agency favourable treatment where possible. This may include investigating its options for restoring 'intermediate' equity content to the outstanding instruments. Any amendments will be notified to the market as required.

Notes

UPDATE: 18 November 2015

On 18 November 2015, Centrica signed a deed of undertaking in relation to its €750,000,000 Subordinated Resettable Fixed Rate Notes due 2076 and a deed of undertaking in relation to its £450,000,000 Subordinated Resettable Fixed Rate Notes due 2075. Please see the announcement here.