Ratings downgrade for Oxford Finance

The rating agency also lowered the short term rating on Oxford from "A-3" to "B."

"The downgrade reflects our opinion of the weakening credit profile of the wider Electra Group," said Standard & Poor's credit analyst Peter Sikora.

"In our view, OFC's credit profile has come under pressure from an increase in asset-quality problems. In addition, Electra Group's growth strategy to diversify into a range of higher-risk activities outside of its core strength in electricity distribution is aggressive and had moderated our credit view of the group."

Sikora said Standard & Poor's believed Electra Group's electricity network business is investment grade on a standalone basis, but the overall credit profile of Electra Group "is significantly weighed down by the weaker wholly-owned subsidiaries, which include OFC."