S&P lowers SSE to negative

Standard & Poor's said it revised the outlook on SSE plc and related entities to negative from stable.

The agency also said it affirmed the company’s A- long-term and A-2 short-term corporate credit ratings.

The negative outlook reflects an opinion that earnings may continue to be hampered by low energy and commodity prices, which could result in credit metrics below expectations, S&P said.

The company’s 2015 results were within expectations, but its FFO-to-debt ratio will be 1% to 2% lower than previously expected over the next two years due to the sharp decline in power prices and spreads in the United Kingdom, the agency said.

But, S&P said SSE's unregulated energy-generation business is diversified across many plants and energy sources, which provides the company with the flexibility to adapt to changes in the price of gas, coal and renewable.

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