(The following was released by the rating agency)
SYDNEY (Standard & Poor‘s) Aug. 21, 2012--Standard & Poor’s Ratings Services today said that it had assigned its ‘BBB’ long-term rating to United Energy Distribution Pty Ltd.’s (UED; BBB/Stable/NR) A$65 million medium-term notes (MTN) to be issued under its existing rated A$400 million MTN program. The senior unsecured notes are expected to be issued with a coupon of 6.25% and maturity of April 2017. The proceeds of the bond issue are to predominantly refinance some of UED’s senior unsecured bank debt facility.
The ‘BBB/Stable’ corporate credit rating on UED, a regulated electricity distributor in the State of Victoria (AAA/Stable/A-1+), reflects our view of the company’s high level of cash-flow certainty and its “adequate” liquidity. We consider these strengths to be partly offset by our view of the company’s aggressive capital structure.