S&P cuts Scottish and Southern Energy

Standard & Poor's said it lowered the long-term corporate credit ratings on Scottish and Southern Energy plc and related entities to A from A+ and removed the ratings from CreditWatch with negative implications, where they were placed on Jan. 8.

The outlook is negative.

The downgrade reflects increased leverage and business risk, S&P said.

Ratings are supported by the strong predictable cash flow of the regulated monopoly electricity and gas networks businesses, the agency said. The group's strong operating record and diversified generation fleet, as well as its success in consistently increasing customer numbers in the intensely competitive supply business, also support ratings.

These strengths are offset by the exposure of operating profits to movements in wholesale power, coal and gas prices, S&P said.

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