NextEra Energy Capital Holdings Inc.'s Series O Junior Subordinated Debentures Due 2079 Rated 'BBB'

NEW YORK (S&P Global Ratings) April 2, 2019--S&P Global Ratings today assigned 
its 'BBB' issue-level rating to Juno Beach, Fla.-based diversified clean 
energy company NextEra Energy Capital Holdings Inc.'s (NEECH) series O junior 
subordinated debentures due 2079. NEECH intends to use the net proceeds from 
these notes to redeem short-term debt and for general corporate purposes.

We classify these notes as hybrid securities with intermediate equity content 
(50%). We rate the securities two notches below our 'A-' long-term issuer 
credit rating on NEECH to reflect their subordination and the company's 
ability to defer interest payments on the notes. Our intermediate equity 
treatment is premised on the instrument's permanence, subordination, and 
deferability features.

The security's long-dated nature, along with the company's limited ability and 
lack of incentives to redeem the issue for a long-dated period, meets our 
standards for permanence. In addition, the interest payments are deferrable, 
which fulfills the deferability element. The instrument is also subordinated 
to all of NEECH's existing and future senior debt obligations, thereby 
satisfying the condition for subordination.

Our issuer credit rating on parent NextEra Energy Inc. is 'A-' and the outlook 
is stable, which incorporates our view that the company will continue to 
reduce the risk at its competitive businesses by strategically growing through 
contracted assets and that its regulated utility business will consistently 
account for about 70% of the company's consolidated EBITDA. We expect that 
NextEra's fully debt-financed acquisition of Gulf Power will weaken its 
consolidated financial measures, including reducing its funds from 
operations-to-debt ratio to the 21%-24% range.

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