Fitch Rates 2 Jr. Sub Debenture Hybrids of FPL Group Capital 'A-'; Outlook Stable.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch has assigned an 'A-' rating for two hybrid securities Hybrid Security A security that combines two or more different financial instruments. Notes: Hybrid securities generally combine both debt and equity characteristics. issued by FPL Group Capital Inc (Group Capital): --$250 million series D junior subordinated debentures subordinated debenture An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before ; --$350 million series E junior subordinated debentures. Both are due Sept. 1, 2067. The Rating Outlook is Stable. Series D debentures will bear interest at 7.30% for 10 years and at an indexed rate thereafter. Series E notes will bear interest at a fixed rate of 7.45%. Proceeds from the issuance will be added to Group Capital's general funds and used to repay a portion of commercial paper issued by Group Capital to fund investments in independent power projects. Both debentures are fully and unconditionally guaranteed Unconditionally Guaranteed is the eighth LP by Captain Beefheart & the Magic Band, originally released in 1974. Upon release it was criticised for being too commercial, however it failed to give Beefheart any real chart success and peaked at #192 on the Billboard on a subordinated basis (Subordinated Guarantee) by parent company FPL Group, Inc. (FPL, Fitch Issuer Default Rating [IDR IDR In currencies, this is the abbreviation for the Indonesian Rupiah. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ] of 'A'). Series D and E debentures will rank junior and be subordinated in right of payment and upon liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy to all of Group Capital's senior indebtedness, and FPL's payment obligation under the Subordinated Guarantee will rank junior and be subordinated in right of payment and upon liquidation to all of FPL Group's senior indebtedness. Both series of junior subordinated debentures conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" Fitch's Class D hybrid securities category and will be allocated 75% to adjusted equity and 25% to adjusted debt in Fitch's evaluation of FPL's financial leverage. Features supporting the equity categorization of these debentures include the junior subordinate ranking, the option to defer interest payments on a cumulative basis for up to 10 years on each occasion, a 60-year maturity without an investor put provision and a replacement capital covenant for the benefit of holders of a specified senior debt instrument of Group Capital or FPL and not for the benefit of holders of series D or E debentures. Pursuant to the replacement capital covenant, FPL obligates itself not to redeem, purchase or defease the securities before Sept. 1, 2037 except in certain limited circumstances and to the extent that a specified amount of proceeds shall have been raised from the issuance of qualifying securities that have equity-like characteristics that are the same as, or more equity-like than, the applicable characteristics of the junior subordinated debentures at the time of redemption, purchase or defeasance. Fitch's ratings of FPL Group Inc. and FPL Group Capital reflect the strong financial profile and robust customer base of the company's primary subsidiary, Florida Power & Light Company (FP&L IDR 'A'). Group Capital is a holding company for all of FPL's non-regulated activities, the largest of which is its non-regulated electric generation activities (FPL Energy). FPL Energy owns a substantial generation fleet serving multiple U.S. power regions across the spectrum of fuel types and is the largest developer and owner of wind power in the U.S. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. 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 Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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