Industry Report Card: Regulatory Cloud Still Hangs Over Stable Outlook For Australian And New Zealand Utilities May 12
- Language: English
- Published: May 2012
- Region: Australia, New Zealand
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.
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: Full Analysis
Watercare Services Ltd.