TEXT-S&P Rates Origin Energy Finance Ltd.'s Euro MTN Program 'BBB+'
(The following was released by the rating agency)
MELBOURNE (Standard & Poor's) Sept. 24, 2012--Standard & Poor's Ratings Services today said that it had assigned its 'BBB+' long-term debt rating to the US$10 billion Euro medium-term note (EMTN) program of Origin Energy Finance Ltd., a wholly owned subsidiary of Origin Energy Ltd. (Origin; BBB+/Negative/A-2). The program benefits from an unconditional and irrevocable guarantee from Origin. The senior unsecured EMTN program enables various debt types to be issued, which will rank pari passu with Origin's other senior debt obligations. In our view, the program gives Origin access to an additional source of funds, reducing its current reliance on bank debt and increasing the flexibility to manage its debt-maturity profile. We note that the program does not benefit from a change-of-control clause, thereby potentially heightening rating-transition risk for investors.
RELATED CRITERIA AND RESEARCH
-- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008