S&P Global Ratings said it will consider SoftBank Group's (TYO:9984) proposed new subordinated bonds as having intermediate equity content, according to a recent release.

The transaction will have a neutral impact on the investment holding company's current issuer credit rating.

The classification reflects the proposed bonds' characteristics, such as the issuer's option to defer interest payments, a sufficiently long residual time, and subordination in liquidation or bankruptcy proceedings

The rating agency's classification will last until 2030, holding 50% of the total issuance amount as equity and the other 50% as debt.

The new bonds will refinance a portion of existing subordinated bonds from February 2021, with SoftBank having already refinanced part of the older bonds through a subordinated loan in November 2024.

Following the bonds' issuance, S&P will reclassify the refinanced portion of existing bonds as having no equity content.