The rating on Genesis Power Ltd. (trading as Genesis Energy) reflects our opinion of the company's position as a major integrated electricity generator and retailer in New Zealand. Genesis Energy's reasonably diversified generation portfolio and its 100% ownership by the government of New Zealand (local currency AA+/Stable/A-1+, foreign currency AA/Stable/A-1+) also support the rating. The company's weakening competitive position following the July 2010 start of the New Zealand's emissions trading scheme (ETS) partly offsets these strengths. Other credit weaknesses include Genesis Energy's exposure to a volatile wholesale electricity market. The company is also exposed to oil price volatility due to its 31% equity share in the Kupe oil and gas field in New Zealand. We assess Genesis Energy's standalone credit
