WELLINGTON - Transpower's financial arm has been given strong long and short-term credit ratings for its A$750 million ($878 million) debt issuance programme.
Standard & Poor's said it has assigned AA long-term and A-1 plus short-term ratings on its medium term and short-term notes, which are backed by Transpower New Zealand.
Transpower
treasurer John Bishop said Transpower would be in a position to release more definite funding plans and details of likely maturities towards the end of October.
Mr Bishop said raising funds in New Zealand was difficult because of its size and that Australia represented a logical alternative.
"It's a good long-term strategy given Transpower and the New Zealand electricity industry is fairly similar to Australia's so we should be reasonably well understood," he said.
Transpower is New Zealand's provider of high-voltage transmission services. S&P said the ratings reflected its position as a natural monopoly of an essential service, "an improving operating environment and the supportive government ownership".
These strengths were tempered by risks associated with possible price regulation and a moderate financial profile, S&P said.
The establishment of an Australian dollar debt issuance programme would enhance Transpower's fund options, the agency said.
- NZPA
