The ratings on Genesis Power Ltd. (Genesis) reflect its diversified generation portfolio and the strong market position of its retail base. These strengths are offset by the prospective weakening of its financial profile as a result of a substantial planned investment in additional generation capacity. The rating factors in an element of support from Genesis' owner, the government of New Zealand (local currency, AAA/Stable/A-1+; foreign currency, AA+/Stable/A-1+). Genesis' credit quality is enhanced by the diversity of its generation portfolio. The portfolio's composition of fuel sources, which is 70% thermal and 30% hydro, places the company in a strong position to deal with fuel and weather dynamics. Moreover, with seven plants and 28 separate generation units, Genesis has the operational flexibility
