S&P maintains Buy rating for SSE saying higher prices will improve margins


S&P Capital IQ Equity has maintained its Buy rating for energy provider SSE, despite its raising of gas and electricity prices by 8.2 per cent this November.

The financial information provider expects the rise to boost profit, restoring margins in the second half of 2014.

For the full year 2014, S&P anticipates SSE's energy supply margin will reach 4.4 per cent, versus the company's target of five per cent.

SSE has pledged not to increase its prices again before Autumn of next year at the earliest, but indicated further cost pressures could lead to tariff increases in 2015.