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Bulletin: Ratings On Australian Electricity Network Sector Not Immediately Affected By Regulator's Pricing Decision May 09
Standard & Poors, May 2009
Abstract
MELBOURNE (Standard & Poor's) May 4, 2009--Standard & Poor's Ratings Services said today that the Australian Energy Regulator's (AER) final decision on the weighted-average cost-of-capital (WACC) parameters that will affect electricity network companies at their next regulatory price reset has no immediate implications for the ratings on the following companies: The CitiPower Trust (A-/Stable/--), Powercor Australia LLC (A-/Stable/A-2), ETSA Utilities Finance Pty Ltd. (A-/Stable/--), SP AusNet Group (A-/Negative/--), United Energy Distribution Holdings Pty Ltd. (UED; BBB/Stable/--), and ElectraNet Pty Ltd. (BBB+/Negative/A-2). Nevertheless, we consider the AER decision to be adverse for the sector's creditworthiness. The regulator's decision will lower regulated cash flow and, without any corrective actions, erode the already-thin credit metrics of these companies. No immediate rating actions have...
Companies mentioned in this report are: The CitiPower Trust,United Energy Distribution Pty Ltd.,Powercor Australia LLC,ETSA Utilities Finance Pty Ltd.,ElectraNet Pty Ltd.,United Energy Distribution Holdings Pty Ltd.,SP AusNet Group
Action: Bulletin
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: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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