Fitch Assigns 75% Equity Credit to FPL Group Capital Enhanced Hybrid Notes
Based upon Fitch's new hybrid rating criteria published on Sept. 27, 2006, Fitch has assigned the FPL Group Capital Enhanced Junior Subordinated Debentures due Oct. 1, 2066 (Debentures) to class D and will allocate 75% of the principal to adjusted equity and 25% to adjusted debt in evaluating the financial leverage of FPL Group Capital. Key features supporting the equity credit class of the Debentures include the junior subordinate ranking, 10-year cumulative optional deferral of interest payments, a 60 year maturity with no put provision and a covenant not to redeem or repurchase the securities for 30 years except in certain limited circumstances and except to the extent that the applicable redemption or repurchase price does not exceed a specified amount of proceeds from the sale, during the 180 days prior to the date of that redemption or repurchase, of qualifying securities that have equity-like characteristics that are the same as, or more equity-like than, the applicable characteristics of the Debentures at the time of redemption or repurchase by FPL Group Capital.
These hybrids were rated 'A-' on Sept. 14, 2006. See rating action commentary 'Fitch Rates FPL Group Capital's Enhanced Subordinated Debentures 'A-''.
Fitch's new hybrid rating criteria 'Equity Credit for Hybrids & Other Capital Securities' is available on the Fitch Ratings web site at 'www.fitchratings.com/hybrids'.
Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
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