S&P lowers Origin Energy, view up to stable

Standard & Poor's said it lowered the long-term corporate credit and senior unsecured debt ratings on Origin Energy Ltd. to BBB.

The outlook also was revised to stable from negative.

The A-2 short-term corporate credit rating was affirmed.

In addition, the rating on the NZ$200 million hybrid issued by Origin Energy Contact Finance No.2 Ltd. is lowered one notch to BB+ and the rating on the €500 million hybrid issued by Origin Energy Finance Ltd. is lowered two notches to B+.

The ratings reflect an expectation that earnings growth from Origin's core energy business for the next few years is likely to be weaker than previously expected, S&P said.

This is because the persistence of the trend of weaker electricity-demand levels is leading to lower volumes, particularly in the mass market segment, the agency said.

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