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Bulletin: DUET's Results Meet Expectations, But Equity Recapitalization Of Asset Companies May Weaken Credit Profile Feb 11
Standard & Poors, Feb 2011
Abstract
MELBOURNE (Standard & Poor's) Feb. 22, 2011--Standard & Poor's Ratings Services today said that DUET Group's (BBB-/Stable/--) half-year results and strategy for its investment asset companies (assetcos) were broadly in line with our expectations. However, in our view, if DUET's plan to deleverage its assetcos over the near term is not balanced with an appropriate capital structure and liquidity at DUET, it may weaken the group's credit profile. We expect that a significant portion of the cash and undrawn corporate debt facilities at DUET will be used to retire subordinated debt (known as the SOLAs) provided by DUET at the assetcos to bolster the credit profiles of the assetcos. For example, DUET recently announced the extinguishment of A$184 million of...
Companies mentioned in this report are: DUET Group,Energy Partnership (Gas) Pty Ltd.,United Energy Distribution Holdings Pty Ltd.,ATCO Gas Australia,DBNGP Trust,SPI (Australia) Assets Pty Ltd.
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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