Watercare Services Ltd has had a credit rating lift through being owned by the new Auckland Council.Standard&Poor's said it raised Watercare's rating to A from AA with a positive outlook, citing the benefit being owned by the newly created Auckland Co
Watercare Services Ltd has had a credit rating lift through being owned by the new Auckland Council.
Standard&Poor's said it raised Watercare's rating to A from AA with a positive outlook, citing the benefit being owned by the newly created Auckland Council.
Watercare supplies around 370 million litres of drinking water to the people of Auckland and treats around 350 million litres of wastewater and trade waste, according to its website.
"We believe that Watercare has a strong link to its parent and at the same time fulfils a critical role. We also think that there would be a high likelihood that the council would provide extraordinary support to Watercare if needed," Standard&Poor's credit analyst Philip Grundy said.
"The positive outlook reflects our view that the amalgamation of the six councils that own Watercare into a single entity will be positive for the company and may increase the likelihood of extraordinary credit support from the owner in times of financial stress to extremely high.
"This could lead to the corporate credit rating on Watercare being raised, potentially by two notches. Any rating change would be subject to a settling-in period for the new council and to our understanding of the council's continued support for Watercare under extraordinary circumstances," Mr Grundy said.
