Research Update: Ratings On Auckland Council Affirmed At ?AA/A-1+? On Sound Fiscal Performance; Outlook Stable Nov 12
- Language: English
- Published: November 2012
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.
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Watercare Services Ltd.