Danish power producer DONG Energy A/S's second-quarter results and 2012 outlook were somewhat below our previous expectations, mainly owing to weak power prices and gas markets, and we see downside risk in its key credit metrics over the near to medium term. We believe DONG Energy's thermal electricity generation and gas operations face increasingly challenging business conditions that could reduce profitability. We are placing our 'A-' long-term corporate credit rating on the company on CreditWatch with negative implications. We aim to resolve the CreditWatch placement within the next three months. On Aug. 13, 2012, Standard&Poor's Ratings Services placed its 'A-' long-term corporate credit rating on Danish integrated power and gas company DONG Energy A/S on CreditWatch with negative
