The ratings on Denmark-based DONG Energy A/S reflect the company's strong position in the Danish energy market and the stability offered by its regulated gas and power distribution operations, which, together with other partly regulated or subsidized activities, contribute about 25%-30% of the company's EBITDA. Standard&Poor's Ratings Services considers these strengths to be offset by financial underperformance relative to ratings targets in 2009 and the major part of 2010 on a rolling 12-months basis, increasing exposure to higher-risk oil and gas exploration and production (E&P) activities, and earnings volatility in its competitively exposed gas supply and power generation operations. Moreover, we believe that DONG Energy's midstream gas operations will remain pressured by sustained gas market prices below the
