Standard & Poor’s Rating Services has affirmed its ‘A-‘ long-term corporate credit rating on SSE (Scottish and Southern Energy plc) and stated that the outlook for the rating is ‘stable’. This follows the decision by Moody’s Investors Service in July 2010 to affirm its ‘A3’ issuer rating for SSE, also with a ‘stable’ outlook.
In line with its commitment to maintaining a flexible approach to financing, SSE has signed an amendment agreement with banks to extend and reduce the price of its main Revolving Credit Facility (£900m) from June 2012 to August 2015. The facility is, and is expected to remain for the foreseeable future, undrawn.
SSE is also proposing an issue of hybrid capital securities, a financial instrument which is perpetual and subordinate to all senior creditors.
Gregor Alexander, Finance Director of SSE, said:
“SSE believes that maintaining a strong balance sheet, evidenced by a commitment to the criteria for a single A credit rating, is a key financial principle. Our commitment to maintaining financial flexibility is also strong, and the proposed hybrid capital securities will provide another source of funding to complement our already well-financed investment programme.”