Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


ECNZ Seeks Withdrawal Of Credit Ratings

MEDIACOM-RELEASE-ECNZ

ECNZ SEEKS WITHDRAWAL OF CREDIT RATINGS

The Electricity Corporation of New Zealand Limited (ECNZ) has requested that Standard and Poor's withdraw its credit rating of the company effective from 15 August 2000.

The platform was set for ECNZ to seek the withdrawal of its credit ratings when ECNZ was split into 3 separate State Owned Enterprises (SOEs) on 1 April 1999. As part of the split process the New Zealand Government unconditionally and irrevocably guaranteed ECNZ's outstanding debt obligations.

ECNZ Chief Executive Chris McGeown has advised that the maintenance of its credit ratings, until the expiry of all the outstanding ECNZ debt in 2009, is a significant cost to the company. Given the irrevocable Crown Guarantee supporting ECNZ's obligations there is marginal value in ECNZ continuing to maintain credit ratings in its own name.

Investors in all ECNZ debt instruments are now effectively assuming " sovereign risk" and, as such, will not be adversely affected by ECNZ's decision to withdraw its credit rating.

ECNZ's assets were transferred into three new State Owned Enterprises (SOEs) - Mighty River Power Ltd., Genesis Power Ltd., and Meridian Energy Ltd. - on April 1, 1999. Since then ECNZ's role has been to manage some residual functions, including the administration of its existing debt obligations.

While ECNZ continues to be the principal debtor under its debt obligations, the new SOEs have entered into identically matched back-to-back arrangements and effectively service the debt.

ECNZ hopes to conclude discussions with Moody's Investor Services to similarly withdraw the rating given by that organisation in the very near future.

ENDS

MEDIA RELEASE FROM THE ELECTRICITY CORPORATION OF NEW ZEALAND

-------------------------------------------------------------

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>

ALSO:

Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>

ALSO:

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news