In our view, adverse industry conditions and eroding profitability have weakened Danish integrated power and gas company DONG Energy's business risk profile. We expect weakening profitability and operating cash flow generation and high investment levels to lead to weaker credit measures. We are lowering our long-term corporate credit rating and issue ratings on DONG Energy to 'BBB+' from 'A-', and affirming the 'A-2' short-term rating. The negative outlook reflects our view that DONG Energy could find it difficult to improve its financial risk profile and credit measures to a level commensurate with its 'bbb' stand-alone credit profile over the next 12-24 months. On Oct. 24, 2012, Standard&Poor's Ratings Services lowered its long-term corporate credit rating on Danish integrated
