Summary: Scottish and Southern Energy PLC Apr 09

Standard & Poors, April 2009

Abstract
The ratings on U.K.-based energy utility Scottish and Southern Energy PLC (SSE) and its subsidiaries reflect the group's significant domestic market presence in electricity generation, distribution, and supply, and gas distribution; strong, predictable cash flows from the regulated monopoly network businesses, which will likely contribute 30%-35% of operating profits over the medium term; the group's success in consistently increasing customer numbers despite intense competition in the U.K. supply market; and a generally strong operational track record supported by a well diversified generation fleet. These strengths are offset by the exposure of SSE's operating cash flows to movements in wholesale commodity prices, plant availability, and volumes; an increase in business and financial risk following the €1.46 billion acquisition in February 2008...

Companies mentioned in this report are:
- SSE PLC
- Scottish Hydro-Electric Transmission Ltd.
- Scottish Hydro-Electric Power Distribution Ltd.

Action: Review

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.

- SSE PLC
- Scottish Hydro-Electric Transmission Ltd.
- Scottish Hydro-Electric Power Distribution Ltd.

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