S&P affirms Origin Energy

Standard & Poor's said it affirmed the BBB+ long-term and A-2 short-term corporate credit and debt ratings on Origin Energy Ltd. and its subsidiaries.

The affirmation follows news that Australia Pacific LNG Pty Ltd., in which Origin has an effective 37.5% stake, has approved a final investment decision on the second of its two-train coal seam gas to liquefied natural gas project.

S&P also said it revised the outlook to negative from stable.

The agency said it expects Origin's decision to sell down to a longer term stake of 30% to support its financial profile.

Nevertheless, the negative outlook considers that there is a risk of a delay or uncertain conditions regarding the sell-down, S&P said.

A delay could weaken Origin's financial profile as the company meets its funding obligation to Australia Pacific LNG, the agency said.

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