The ratings on Genesis Power Ltd. (trading as Genesis Energy) reflect our opinion of the company's market position as a major integrated electricity generator-retailer (also known as gentailer) in the New Zealand electricity market. Also underpinning the ratings is Genesis Energy's reasonably diversified generation portfolio and its 100% ownership by the government of New Zealand (local currency AAA/Stable/A-1+, foreign currency AA+/Negative/A-1+). Offsetting these strengths is our view of Genesis Energy's weakening competitive position following the imposition of a carbon charge on the company's sizeable thermal generation portfolio as part of the introduction of Emissions Trading Scheme (ETS) legislation in July 2010. Other credit weaknesses include the company's exposure to a volatile wholesale New Zealand electricity market; an increasing exposure to
