The rating on New Zealand electricity generator and retailer Genesis Power Ltd., trading as Genesis Energy (Genesis), reflects the company's reasonably diversified generation portfolio, solid retail market position, and prudent liability management. The rating incorporates a modest element of support from the company's owner—the New Zealand government (local currency, AAA/Stable/A-1+; foreign currency, AA+/Negative/A-1+). These strengths are somewhat offset by a weakening in Genesis' credit-protection metrics and the likelihood 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 the company's generation and retail operations. Its competitive position is supported by some diversification of generation assets and a solid retail market position as New
