The ratings on Genesis Power Ltd., trading as Genesis Energy (Genesis), reflect its reasonably diversified generation portfolio and the strong market position of its retail base. These strengths are offset by the recent and forecast weakening of its financial profile, as a result of substantial investment in the Huntly e3p power station and fuel development projects, such as Kupe and Cardiff. The ratings factor in an element of support from Genesis' owner, the New Zealand government (local currency, AAA/Stable/A-1+; foreign currency, AA+/Stable/A-1+). Genesis' credit quality is supported by, and benefits from, the diversification of its generation portfolio. The portfolio's composition—70% thermal and 30% hydro—places the company in a strong position to deal with fuel and weather dynamics, which remain key
