Powerco bonds get rating

Prime Infrastructure, the Australian owner of our second biggest powerlines company Powerco, says its new bonds have been rated as BBB/A-2 by Standard & Poor's.

S&P has also removed Powerco from its "Creditwatch" list, which it was put on when Prime launched its takeover of the New Plymouth based company last year.

Prime, part of the Babcock & Brown investment banking empire, is raising $100 million in an unsecured, subordinated bonds issue, with the money being put to help finance its purchase of Powerco's Capital Bonds during last year's takeover. These are being issued to institutions and the general public.

Prime is dual listed in Australian and New Zealand.