Centrica’s Hybrid Bond Sale Is a Milestone Under New Criteria

Centrica Plc is the first company in Europe to boost the credit rating for its hybrid bonds under a new classification system for the debt by Moody’s Ratings.

The UK utility shortened the debt maturity and put a cap on so-called coupon deferrals, meaning it has less room to delay payments to investors. The debt sale, Centrica’s first in public markets since 2015, was met by strong investor demand.

With markets running hot, the question over whether the changes made a difference to the bond pricing is up for debate. However, the sale is a significant because other companies with ...