Solid market position as New Zealand's largest electricity and gas retailer, with a modest generation position Limited growth investment opportunities Some exposure to volatile commodity prices through the Kupe joint venture Exposure to a potentially volatile wholesale electricity market, and a high level of retail competition Marketwide uncertainty relating to Tiwai's continued operations and possible surplus generation capacity No financial headroom in the current rating Modest incremental earnings over the short-to-medium term from recent acquisitions Low capital spending requirements currently, although will increase toward the end of the current decade Limited financial flexibility due to progressive dividend payouts and ownership considerations Positive discretionary cash flows, which should enable marginal deleveraging over the next couple of years The stable outlook on
