Moody's: Woodside outlook negative

Moody's Investors Service said it changed the outlook on the Baa1 long-term rating of Woodside Finance Ltd. and the Baa1 issuer rating of Woodside Petroleum Ltd. to negative from stable following the company's announcement that the Pluto LNG project cost is expected to be 6% to 10% higher than the original budget of A$11.2 billion.

Woodside's credit profile has a limited cushion within the Baa1 rating given the large capex associated with Pluto and the company's weak financial profile relative to what is appropriate for the rating, the agency said, adding that the announced cost over-run exerts additional pressure on the financial profile and further constrains the rating.

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