The Dominion Post today reported that the international ratings agency said a change of controlling shareholder may affect the terms and conditions of Powerco's existing debt agreements and influence the direction of the company. It has placed Powerco's credit rating - triple B-plus long term and A-2 short term - "on credit watch with developing implications".

Standard & Poors’ associate director corporate and infrastructure ratings, Colin Atkin, is reported as saying Powerco's credit rating could weaken or strengthen under new controlling shareholders, depending on who they were and what in direction they wanted to take Powerco.

Atkin said Powerco had a moderate level of debt and solid and reliable cashflows. Its three medium-term notes issued in March were unaffected by the rating action.

EnergyReview.Net has previously reported that over 20 companies - from North America, Asia, Australia and New Zealand - have expressed interest in the 53.65% of Powerco being sold by majority stakeholder New Plymouth District Council, the Taranaki Electricity Trust and Wanganui’s Powerco Community Trust.

Any buyers of the 53.65% stake must also launch a full takeover offer for Powerco, which has a market capitalisation of about NZ$660.8 million. Powerco’s 2004 annual report shows it has long-term liabilities of about NZ$1.1 billion and equity of NZ$558 million.

A short list of up to five bidders is to be considered by the NPDCC about mid-August.

The Powerco sale saga is just one of three dominating the kiwi energy scene at present. There is the Edison Mission Energy sale of its 51% stake in Contact Energy and a 66% stake in NGC Holdings is also considered to be unofficially on the market, due to intense speculation that AGL may quit NGC and bid for Contact.