hard · Corporate Credit Analysis
Apex Group issued a hybrid security that is long-dated (30 years) and deeply subordinated, with an optional cumulative coupon deferral mechanism and no step-up in coupon at the call date.
According to standard rating agency methodology, how is this likely to be treated in leverage calculations?
- Excluded from leverage entirely
- 50% debt and 50% equity
- 100% debt
- 100% equity
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