Thursday 7th April 2011 |
Text too small? |
Moody's Investor Services has given a provisional (P)Aa3 rating, with a stable outlook, for state-owned electricity network owner Transpower's $1.5 billion medium term notes programme.
The rating was supported by Transpower's strong standalone credit profile reflecting its low business risk and relatively stable and predictable cash flows combined with the likely strong support from the Government, Moody's assistant vice-president Matthew Moore said.
"Transpower's standalone credit profile is supported by the company's monopoly position as the sole electricity transmission network owner and operator in the country and demand risk is also viewed as low, given the history of electricity volume through the company's network," Moore said.
Balancing those strengths was the large grid investment planned for the next several years which would be funded by a combination of debt and internally generated cash flow, and the evolving regulatory environment.
Moody's expected notes issued under the programme to be primarily used to refinance existing indebtedness and fund Transpower's capital expansion plans.
Any incremental indebtedness issued under the programme was not expected to weaken Transpower's credit metrics beyond acceptable levels for the rating.
NZPA
No comments yet
August 1st Morning Report
Infratil releases Climate Related Disclosures
The Warehouse Group Appoints Chief Digital & Transformation
The Financial Collapse Has Already Begun - Will You Be Caught Off Guard?
NWF - IMPLEMENTATION OF SCHEME OF ARRANGEMENT
EROAD Publishes FY25 Group Climate Statement
Synlait provides performance update
Air New Zealand Chief Executive Officer Appointment
July 30th Morning Report
IKE 1Q FY26 Performance Update