Port's commercial paper gets A-1 rating

By Phil Boeyen, ShareChat Business News Editor

Tuesday 9th April 2002

Ports of Auckland's (NZSE: POA) commercial paper programme, which is expected to be issued this month, has been assigned an A-1 short-term rating by Standard & Poor's.

The ratings agency says the proceeds from the commercial paper will be used to make the anticipated $132 million of capital returns to shareholders this year as well as for general working capital purposes.

"The liabilities will rank at least equally with all other unsecured, unsubordinated indebtedness of the company," S&P says.

"POAL also has put in place adequate standby facilities to fully cover the expected drawings under the program."

Standard and Poor's says the port company has a strong business position, competitive advantage, and a moderate financial profile.

POA plans to launch the commercial paper programme following a special meeting in Auckland tomorrow to approve the capital return.

Up until the end of December 2001 the company recorded container volume growth of around 6%. Although growth slowed in January POA chief executive, Geoff Vazey, says volumes were very strong in March and growth has tracked at 6% for the nine months to end-March 2002.

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