ORG a shorting victim after STO, page-54

ORE TO FOLLOW) Dow Jones Newswires
September 24, 2015 20:23 ET (00:23 GMT)
Press Release: S&PBulletin: Origin Rtgs Unffctd By Revised Oil Price Assmptns


The following is a press release from Standard & Poor's:

SYDNEY (Standard & Poor's) Sept. 25, 2015--Standard & Poor's Ratings
Services
said today that its 'BBB-/Stable/A-3' issuer credit rating on Origin Energy
Ltd. is unaffected following the publication of its revised oil price
assumptions, which are on average US$7.50 lower than the prior assumptions.
While the oil prices clearly weaken the financial metrics from the year ending
June 30, 2017 (the first full year of meaningful contributions from the
Asia-Pacific Liquefied Natural Gas [APLNG] project), the majority of this
impact is compensated by the benefit from the expected cost-cutting program
that Origin has announced at the time of its annual results.

Based on the revised figures, we estimate that Origin Energy's key financial
ratio of debt to EBITDA would be about 4x in fiscal 2017 and decreasing
thereafter. While the ratings are currently unaffected, all else being equal,
the buffer to the rating has now significantly reduced and the company would
be exposed should we further revise downward our oil price assumptions. Our
ratings continue to be supported by our understanding that APLNG remains on
track, with completion of Train 1 in the coming months.

RELATED RESEARCH
-- Standard & Poor's Revises Its Crude Oil And Natural Gas Price
Assumptions, Sept. 24, 2015

Under Standard & Poor's policies, only a Rating Committee can determine a
Credit Rating Action (including a Credit Rating change, affirmation or
withdrawal, Rating Outlook change, or CreditWatch action). This commentary and
its subject matter have not been the subject of Rating Committee action and
should not be interpreted as a change to, or affirmation of, a Credit Rating
or Rating Outlook.

AUSTRALIA
Standard & Poor's (Australia) Pty. Ltd. holds Australian financial services
licence number 337565 under the Corporations Act 2001. Standard & Poor's
credit ratings and related research are not intended for and must not be
distributed to any person in Australia other than a wholesale client (as
defined in Chapter 7 of the Corporations Act).

DYOR