Veolia Environnement exhibits a heavy scale with substantial financing activity in 2022-2023, including large increases in equity and complex hybrid instruments tied to the Suez integration. The balance sheet shows high total capital and rising long-term liabilities, with negative consolidated reserves (Equity Attributable To Owners of Parent around -4.083bn in 2023) and sizable noncontrolling interests. Hybrid debt (deeply subordinated securities) has been used in 2022-2023, including a material issuance of 1.6239bn deep subordinated securities recognized as contributed hybrid debt, followed by substantial repayments and coupon costs in 2023. Given S&P methodology for regulated utilities and infrastructure-like entities, Veolia’s regulatory environment and capital needs suggest advanced capex and potential leverage pressures through the restructuring. Key points: - Current hybrids exist (Deeply Subordinated Securities) and there was a notable 1.6239bn contribution in 2022-2023, with a 0.883bn coupon in 2022-2023 and a large payment in 2023. - Total adjusted capital base needs measurement: Equity + Adjusted Debt. With rising equity and significant long-term and lease liabilities, hybrid capacity up to 15% could be relevant but constrained by existing hybrids. - Grade considerations per guidelines: 0% to 15% options; given high capex/intense financing needs from Suez integration and large bullet financing risk, but also some deleveraging potential via equity issuance in 2022-2023 and strong cash flows from operations (Operating Cash Flows around 4.1-4.8b; investing cash flow improved; financing outflows in 2022-2023). - Market context 2022 swap rates show rising rates, but for hybrids stable funding. Recommendation: 7.5% to 11.25% would be reasonable given moderate-to-high capex/ refinancing needs and some leverage headroom but not extreme. To pick one per checklist, leaning toward 11.25% as hybrid issuance would significantly improve adjusted leverage trajectory with modest debt-cost impact, given current high leverage post-integration and sizable equity base. Final answer: 11.25%