S&P says NGC/Powerco could be placed on creditwatch

Although qualified bidders have not been announced, Vector Ltd (currently rated AA-minus/WatchNeg/A-1 plus) has signalled its intention to bid for the assets and its rating was placed on CreditWatch with negative implications on July 31 -- as a result of the need to debt finance the transaction.

Other interested parties are thought to include Natural Gas Corp (A-minus/Stable/A-2) and Powerco Ltd (A-minus/Stable/A-2).

S&P today warned that both NGC and Powerco could have their ratings placed on CreditWatch if they bid for the company.

"Whether the CreditWatch implication is negative or positive would depend on the scale of the acquisition bid and the proposed funding mix," S&P said.

Formal bids for the assets of UnitedNetworks are expected to be made by the end of August.

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