The rating on Genesis Power Ltd., trading as Genesis Energy (Genesis), reflects its reasonably diversified generation portfolio and the strong market position of its retail base. These strengths are offset by the likely weakening of its financial profile, as a result of the company's substantial investment in fuel-development projects, such as the Kupe and Cardiff gas fields, to secure long-term fuel supplies. The rating factors in a modest element of support from Genesis' owner, the New Zealand government (local currency, AAA/Stable/A-1+; foreign currency, AA+/Stable/A-1+). Tangible evidence of support from the shareholder has been: some degree of underwriting of gas fuel requirements for the Huntly e3p project; dividend deferral to enable Genesis to fund capital expenditure; and oversight of the corporate
