Rating On Watercare Services Ltd.'s MTNs Affirmed At 'AA' After Additional NZ$50 Million Issuance Dec 11
- Language: English
- Published: December 2011
The ratings on New Zealand water-services provider Watercare Services Ltd. reflect the company's natural-monopoly position and stable and strong market demand profile. These strengths are partly offset by a more aggressive and untested, albeit more flexible, pricing regime, and an aggressive financial risk profile. The ratings on Watercare benefit from moderate uplift due to ownership support, which in turn is attributable to the essential nature of the service the company provides, and the status of the owners as the company's primary customers. This support is partly offset by the inherent conflict of interest arising from the owners' status as both owners and customers. Watercare's strong business position is underpinned by its natural-monopoly status in the provision of essential services. Watercare,...
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.
This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.
SHOW LESS READ MORE >