Watercare rating drops

Standard & Poor's has lowered its long-term rating for Auckland-based water company Watercare Services to A from A+ after a weakening of Watercare's financial profile.

But it affirmed Watercare's "A-1" short-term corporate credit rating and gave it a stable outlook.

Watercare's financial profile had been affected by its increasing need for capital expenditure, weaker financial policies and a significant jump in its forecasts for operating expenditure.