Origin unaffected by merger talk: Fitch

The ratings of Contact Energy's majority owner, Australia's Origin Energy, are unaffected by merger speculation, Fitch Ratings said.
Origin has been approached by larger Australian energy company, AGL Energy, about a potential merger, but told the market it was not engaged in any discussions with AGL.
"In the absence of any further "merger/takeover" developments, Origin's ratings remain unaffected," said Kevin Lewis, director in Fitch's Asia-Pacific Energy & Utilities team.
"Should a formal merger proposal (or takeover bid) eventuate, Fitch will immediately place Origin's ratings on Rating Watch until there is clarity about the future business strategy and financial structure of a combined entity, and the likelihood of success of the proposal or bid," Mr Lewis said.
Origin's 51.4 per cent-owned Contact Energy maintained a strong business position in New Zealand's electricity and gas supply sector, underpinned by the strong internal hedge provided by its generation portfolio against its retail exposure, Mr Lewis said.
"Contact maintains a moderate financial profile."
Origin's long-term Issuer Default rating and senior unsecured rating is `BBB+', and it has a short-term `F2' rating.
The outlook on the ratings is stable.
© 2007 AAP