S&P cuts United Energy outlook to negative

Standard & Poor's said it had revised the outlook on its BBB long-term ratings on United Energy Distribution Holdings Pty Ltd. and United Energy Distribution Pty Ltd. to negative from stable.

The BBB issuer and issue ratings were affirmed.

"The negative outlook reflects its view of the heightened risk of downward pressure on United Energy's cash flow metrics in the near-to-medium term if there is no improvement in the company's balance sheet during the same period," S&P credit analyst Parvathy Iyer said.

"Notwithstanding the uncertainty of United Energy's final regulatory outcome on cash flow in Nov. 2010, the agency said it believes that United Energy's financial profile may not remain commensurate with the BBB rating without shareholder support."

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