S&P downgrades Centrica

S&P said it lowered the long term issuer credit rating on Centrica to BBB from BBB+ and lowered the rating on the group's hybrid debt to BB+ from BBB-.

The downgrade reflects a view that Centrica's market position and overall credit quality have weakened with limited prospects for marked improvement in the coming two- to three-years, the agency said.

Over the past few years, strong competitive pressures in the United Kingdom have gradually weakened the operating environment, S&P said.

This has directly harmed Centrica's profitability, the agency said.

The stable outlook reflects an expectation that Centrica will keep its leading position in the United Kingdom gas and electricity supply market and maintain funds from operations-to-debt at higher than 30% on a sustainable basis.

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