S&P: Genesis Energy bonds BBB+

Standard & Poor's said it assigned a BBB+ long-term issue credit rating to Genesis Energy Ltd.’s proposed issuance of up to NZ$75 million in unsecured, unsubordinated, fixed-rate bonds with the ability to accept oversubscriptions of up to NZ$25 million.

The fixed-rate bonds will be issued with a tenor of six years under Genesis Energy’s master trust deed established November 2008, S&P said, and rank pari passu with all of Genesis Energy’s existing senior unsecured debt.

The proceeds of the bond issue will be used for general corporate purposes, including refinancing upcoming debt maturity, the agency said.

The ratings reflect the strong market position of the company as New Zealand’s largest energy retailer with a modest generation position, S&P said.

The company will continue to manage its exposure to volatile electricity prices through its own-generation portfolio and hedging strategy, the agency said.

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