Ann: CREDIT: MRP: Standard & Poor's confirm credit rating for capital bonds

• Release Date: 09/06/14 08:56
• Summary: CREDIT: MRP: Standard & Poor's confirm credit rating for capital bonds
• Price Sensitive: No
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					MRP
09/06/2014 08:56
CREDIT

REL: 0856 HRS Mighty River Power Limited (NS)

CREDIT: MRP: Standard & Poor's confirm credit rating for capital bonds

Standard & Poor's has made the following statement in regard to Mighty River
Power's capital bond offer announced 6 June 2014.

"Standard & Poor's Ratings Services said that it had assigned its 'BB+'
long-term issue credit rating to New Zealand-based utility Mighty River Power
Ltd.'s (MRP) proposed NZ$250 million (plus up to NZ$50 million of
oversubscriptions) in capital bonds.

These securities are subordinated to all current and future senior creditors
of the group. Also, Standard & Poor's has assigned the securities
'Intermediate' equity credit, which means that for presentation purposes we
will reclassify 50% of the capital bonds as equity and hence 50% of the
interest paid as dividends. MRP has indicated that the proceeds will be used
for general corporate purposes to improve financial flexibility and repay
bank debt. The proposed notes have a final maturity date of July 2044;
however, MRP can call the notes under certain circumstances. Nevertheless our
equity classification is influenced by our belief that the company is
committed to maintaining a security of this nature in its capital structure."

For further information:

David Glendining
Head of Communications
0272 105 337

Anna Hirst
Head of Investor Relations
0275 173 470
End CA:00251330 For:MRP    Type:CREDIT     Time:2014-06-09 08:56:17