Genesis Energy's underlying business challenges are increasing, and the proposed acquisition of the Tekapo assets has placed downward pressure on the company's financial flexibility. We have affirmed our ratings on Genesis Energy, but revised the outlook to negative from stable. The ratings may be lowered if the planned acquisition of the Tekapo assets does not proceed or if the company pursues the Tekapo acquisition with a funding strategy and capital structure that contain insufficient headroom to accommodate the company's evolving business profile. On March 10, 2011, Standard&Poor's Ratings Services affirmed its 'BBB+' long-term corporate credit and debt ratings on New Zealand-based utility Genesis Power Ltd. (trading as Genesis Energy). At the same time, we revised the outlook on
