Moody’s lowers Origin Energy to negative

Moody’s Investors Service said it revised the outlook of Origin Energy Ltd. and Origin Energy Finance Ltd. to negative from stable.

Moody’s also said it affirmed Origin Energy’s Baa2 issuer and senior unsecured ratings, as well as its short term issuer rating of P-2.

The agency also said it affirmed Origin Energy Finance’s Baa2 rating, provisional Baa2 senior unsecured rating and Ba1 preference stock rating.

The negative outlook reflects an expectation that Origin’s financial metrics will weaken and could remain below the levels appropriate for its Baa2 rating over the next 18 months, Moody’s said.

The significant decline in oil price in recent months has reduced the expected uplift in revenue upon the completion of the first train of the APLNG project, owing to the linkage between the price APLNG charges for its LNG and the oil price, the agency said.

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