The rating on New Zealand electricity generator and retailer Genesis Power Ltd., trading as Genesis Energy (Genesis), reflects a modest element of support from the company's owner—the New Zealand government (local currency, AAA/Stable/A-1+; foreign currency, AA+/Stable/A-1+), the company's reasonably diversified generation portfolio and solid retail market position, and its prudent liability management. These strengths are somewhat offset by the weakening of Genesis' credit-protection metrics, largely a result of the company's substantial investments to secure long-term fuel supplies, and also the potential for Genesis to be adversely affected by the implementation of a carbon emissions trading scheme (ETS) from January 2010. Genesis' satisfactory business profile reflects the natural hedge provided by its generation and retail operations. Its competitive position is supported
