S&P says UnitedNetworks' rating safe

By NZPA

Friday 6th September 2002

UnitedNetworks' rating is safe for now, despite the downgrade of its majority shareholder US-based Aquila Inc, Standard & Poor's said today.

S&P placed UnitedNetworks' BBB-plus long-term and A-2 short-term corporate credit rating on creditwatch on June 12.

"Although the credit rating on UnitedNetworks has always been constrained by the lower rating on Aquila, the imminent sale of Aquila's shareholding suggests that constraint is somewhat tenuous," said Laurie Conheady, associate director, corporate and infrastructure finance ratings.

"In the event that a sale was not forthcoming in the near term, however, the rating on UnitedNetworks is likely to be lowered."

UnitedNetworks is New Zealand's largest network business, distributing electricity to about 30 percent of the country's electricity customers. It is currently on the block as Aquila attempts to reduce its debt levels.

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