Rating On Watercare Services Ltd.'s MTNs Affirmed At 'AA' After Additional NZ$50 Million Issuance Dec 11
- Language: English
- Published: December 2011
Natural monopoly Stable market demand Intermediate financial risk profile Constrictive pricing regime Increasing capital-expenditure requirement Potential conflict due to customers being shareholders The ratings on Watercare Services Ltd. (Watercare) reflect the company's natural monopoly position, stable market demand, and intermediate financial risk profile. These strengths are offset by a constrictive pricing regime, an increasing capital-expenditure requirement, and the potential for conflict due to customers being shareholders. Watercare's strong business position is underpinned by its natural-monopoly status in the provision of essential services. Watercare provides wholesale water services to six water retailers owned by local councils in the greater Auckland region, as well as wholesale wastewater services to four of these retailers. The wastewater business contributes about 60% of revenues and...
Companies mentioned in this report are: Watercare Services Ltd.
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