S&P affirms AGL Energy

Standard & Poor's said it affirmed its BBB long-term corporate credit rating and debt ratings on AGL Energy Ltd. and the company's subsidiaries, AGL Hydro Partnership and Powerdirect Australia Pty Ltd.

At the same time, the agency said it removed the ratings from CreditWatch with negative implications, where they were initially placed on Feb. 24. The outlook is stable.

In February, according to S&P, AGL Energy announced its intention to purchase the shares it did not already own in Great Energy Alliance Corporation Pty Ltd. (GEAC), the owner of the Loy Yang A (LYA) power station in the State of Victoria

"In our view, the funding raised to date is sufficient to not only pay all transaction and acquisition costs, but also to take out LYA's A$565 million debt scheduled to mature in November 2012, as well as the junior debt (A$234 million) at LYA," said S&P credit analyst Thomas Jacquot in a news release.

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