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

 

Voluntary Administration: Renaissance Brewing Up For Sale

Renaissance Brewing, the first local company to raise capital through equity crowdfunding, is up for sale after cash flow woes and product management issues led to the appointment of voluntary administrators. More>>

Elsewhere:

Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>

ALSO:

Media Mega Merger: Full Steam Ahead For Appeal

New Zealand's two largest news publishers have confirmed they are committed to pursuing their appeal against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>

ALSO:

Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>