S&P lifts cloud over 50% equity corporate hybrids
A senior Standard & Poor’s executive this week allayed fears that the agency was about to toughen its criteria for the great majority of corporate hybrid securities, which it treats as if they were 50% equity, writes Jon Hay.
S&P is reviewing the way it treats the very few corporate hybrids to which it has accorded "high" equity content. This means S&P treats the bond as 100% equity when it examines the issuers balance sheet, so that it considers the senior debt as that much safer.
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