|
|
 |
|
Viewing report
|
|
|
|
Australian Electricity Industry Creditworthiness May Come Under Pressure Due to Banks' Uncertain Commitment May 02
Standard & Poors, May 2002
Abstract
The banking industry has played a critical role in the establishment and operation of Australia's young national electricity market (NEM)by providing much-needed credit support and loans to market participants. The extent of this crucial support now seems to be uncertain, with possible dire consequences for the entire market. The credit quality of Australian electricity companies may come under pressure if the banking industry's current reassessment of its exposure to the sector results in a marked decline in the availability of funds and credit support. Indeed, with banks very active in every segment of the industry-trading, retailing, network, transmission, and generation-any withdrawal of support would undermine the financial integrity of the entire NEM. Banks appear to be concerned about their level...
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
|
|
|
|
