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Bulletin: Price Dispute Has No Immediate Impact On Watercare Ratings Jul 07
Standard & Poors, July 2007
Abstract
MELBOURNE (Standard & Poor's) July 2, 2007--While a significant minority of Auckland City Council (AA+/Stable/A-1+) councilors publicly opposed the 9.1% retail water price increase proposed by the council's subsidiary, Metrowater (not rated), these increases were ultimately approved. Standard & Poor's Ratings Services believes the dispute highlights the risks to the revenue of Metrowater's main supplier, Watercare Services Ltd. (Watercare; A/Stable/A-1), which is associated with material increases in Watercare's forecast capital expenditure. At this stage, the Auckland City dissension has no immediate impact on the ratings or outlook on Watercare as Standard & Poor's expects that Watercare will ultimately achieve the price increases required to fund its necessary capital expenditure while maintaining its current cash-flow metrics. This expectation is based on...
Companies mentioned in this report are: Watercare Services Ltd.,Auckland City Council
Action: Bulletin
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: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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