Accor checks in to hybrid market via €4bn book for €900m

Accor hotel room for new website
By Jon Hay
23 Jun 2014

Accor introduced hybrid capital to a new sector of European industry on Monday, becoming the first hotels company to issue a subordinated bond that is treated partly as equity by the rating agencies.

The French company, which claims to be the world’s leading hotel operator with its brands including Novotel, Sofitel and Ibis, is rated BBB-/BBB-, at the bottom end of investment grade, though with stable outlooks. Its hybrids are rated BB/BB.

In the current market, those lower ratings were sure ...

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