BUZZ-Centrica: HSBC cuts to "reduce" on earnings and dividend risks

** HSBC downgrades Britain's largest energy supplier Centrica to "reduce" from "hold" on earnings and dividend risks

** "We believe that there may be pressure on earnings from Q1 warm weather, taking earnings expectations even below the 9p DPS (dividend per share) cuts assumed by the market" - HSBC

** HSBC cuts its 2019 DPS estimates to 6p from 12p on the back of the company's peer group Q1 performance and payout ratios

** Says 50 pct rebasing to 6p seems more appropriate than 25% cut to 9p, with what is likely to be a challenging Q1 and an expectation that the company will rationalise its assets by potentially selling both its nuclear assets and a stake in its Spirit Energy JV

** Says 9p dividend may not provide sufficient earnings and cash flow headroom; says 50 pct cut would secure dividend and decrease the yield premium

** HSBC cuts PT to 90p from 120p (Reporting By Geetha Panchaksharam)