S&P downgrades Vattenfall

Standard & Poor’s said it lowered the long-term corporate credit rating on Vattenfall AB to BBB+ from A-.

The A-2 short-term corporate credit rating and K-1 regional scale rating on Vattenfall were affirmed.

S&P also said it lowered the rating on Vattenfall’s senior unsecured debt to BBB+ from A-, along with the rating on the subordinated debt to BBB from BBB+ and the rating on the junior subordinated debt to BB+ from BBB-.

The agency also said it removed all of the long-term ratings from CreditWatch, where they were placed with negative implications in July.

The outlook is negative.

The downgrades primarily reflect increasingly difficult industry conditions, resulting in falling profitability and pressure on Vattenfall’s cash flows, S&P said.

These factors have moderately weakened Vattenfall’s business risk profile, the agency said, and also will likely erode its credit metrics over the near term.

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