Highly rated and supportive owner—the New Zealand government Diversified generation portfolio, integrated with a solid retail market position Prudent liability and liquidity management Weakening credit-protection metrics, driven by high capital expenditure Uncertain implications of carbon-emissions-trading scheme Long-term fuel-supply risks The rating on New Zealand electricity generator and retailer Genesis Power Ltd., trading as Genesis Energy (Genesis), reflects the company's reasonably diversified generation portfolio, solid retail market position, and prudent liability management. The rating incorporates a modest element of support from the company's owner—the New Zealand government (local currency, AAA/Stable/A-1+; foreign currency, AA+/Negative/A-1+). These strengths are somewhat offset by a weakening in Genesis' credit-protection metrics and the likelihood for Genesis to be adversely affected by the implementation of a carbon-emissions-trading scheme
