Solid market position as New Zealand's largest electricity and gas retailer, with a modest generation position Limited growth investment opportunities from a relatively modest electricity demand outlook compared with previous years' Some exposure to volatile commodity prices through the Kupe joint venture Marketwide uncertainty relating to Tiwai's continued operations and possible surplus generation capacity Flat-to-declining organic earnings over the medium term due to muted electricity demand and continued depressed commodity prices Low capital spending requirements, which should result in sizable positive free operating cash flows Limited financial flexibility due to expected progressive dividend payouts and ownership considerations Modest positive discretionary cash flow generation that should drive marginal deleveraging over the next couple of years and maintain rating headroom The stable
