Watercare Services Ltd. May 09
Standard & Poors, May 2009
Abstract
Supportive local council owners Natural-monopoly provider of essential services Stable and solid market demand Inherent conflict of interest, given owners are also customers More aggressive and unseasoned, albeit more flexible, pricing regime Aggressive financial risk profile The corporate credit rating on New Zealand water-services provider Watercare Services Ltd. benefits from moderately high uplift due to ownership support, which in turn is attributable to the essential nature of the water and wastewater services the company provides and the status of the owners as the company's primary customers. This support is demonstrated by the establishment of a guarantee of all of Watercare's debt by its major 42% shareholder Auckland City Council (ACC; AA/Negative/A-1+) in 2008, with future debt covered by the guarantee...
Companies mentioned in this report are: Watercare Services Ltd.,Auckland City Council
Action: Review
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.,Auckland City Council
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