Standard & Poor's is taking a tougher line than expected on the granting of "high" equity content to hybrid notes.S&P outlined the proposed changes to its criteria with the release of a "request for comment" last week. Subject to comments being received, and a final decision being made, S&P will no longer assign "high" equity content to instruments that have:- a stated or effective maturity;- any step-up coupon feature or equivalent financial incentive to redeem; or- any type of call option within 10 years of the issue date (with some exceptions).The hybrid notes recently issued by AGL Energy, Origin Energy, Santos and Tabcorp all fail each of these tests.Each note has both a stated and effective maturity date. Each has a stated maturity date, varying from 25 years to 60 years, and each has a coupon step-up date, which classifies as the effective maturity date.Each has a coupon step-up, as just noted, and each is callable in less than 10 years. It seems likely that these hybrid instruments will lose the "high" equity content assigned by S&P, and this will be a capital event that will allow the instruments to be called by the issuer immediately.Interested parties are asked to submit their comments to S&P by December 16.