S&P: British Energy unchanged

Standard & Poor's said its ratings and outlook on British Energy Group plc (BB+/negative) are unaffected by a U.K. government announcement that it is converting and selling up to 450 million shares in the company, effectively reducing its stake to 39% from 64%.

Over the long term, the agency said that the government is not planning to reduce its stake below 29.9%.

The BB rating on British Energy's senior unsecured debt is also unaffected, S&P noted.

The agency said it believes that the sale will have no material effect on cash flow, adding that the U.K. government guarantees British Energy's nuclear decommissioning liabilities and currently receives 64% of the company's excess cash flow through a cash sweep mechanism to the Nuclear Liabilities Fund.

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