Fitch may cut Scottish and Southern Energy

Fitch Ratings said it placed Scottish and Southern Energy plc's AA- long-term issuer default rating, F1+ short-term issuer default rating and AA senior unsecured rating on Rating Watch negative.

The company revealed plans Jan. 4 to purchase Airtricity, the Irish wind energy company. The estimated total cost of the acquisition is GBP1.826 billion.

With the acquisition, the company's capital expenditure is expected to increase significantly due to several ongoing wind farm projects. The impact on its credit metrics is likely to be negative, Fitch said.

The company could also be negatively impacted by its move into unregulated energy activities with the acquisition of Airtricity, the agency said.

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