Summary: Watercare Services Ltd. Feb 09

Standard & Poors, February 2009

Abstract
The ratings on New Zealand water-services provider Watercare Services Ltd. reflect the company's natural-monopoly position and generally stable and strong market demand profile. These strengths are partly offset by a more aggressive and developing, albeit more flexible, pricing regime, and an aggressive financial risk profile. The ratings on Watercare also benefit from moderate uplift due to ownership support from its local council owners, the essential nature of the service the company provides, and the status of the owners as the company's primary customers. This support is demonstrated by the establishment in 2008 of a guarantee of all of Watercare's debt by its major 42% shareholder Auckland City Council (ACC; AA/Stable/A-1+), with future debt covered by the guarantee only if Watercare...

Companies mentioned in this report are: Watercare Services Ltd.
Action: Review

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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.

Watercare Services Ltd.

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