Investor Presentaiton
Capital management strategy
Ausgrid is committed to supporting its current credit ratings and has a prudent capital management strategy to
support this. Ausgrid has a proven track record of taking action to support its credit ratings
1 Capital management strategy
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Ausgrid has a $12.6 billion debt portfolio and is committed to prudent capital management
Investment grade credit ratings are a core part of Ausgrid's capital management strategy
Ausgrid is rated Baa1 by Moody's (implied baa2 on a standalone basis) and BBB (bbb standalone) by S&P (both stable)
The Moody's rating currently includes a one notch uplift due to the implied support of all three shareholders, i.e. not just the NSW Government
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Commitment to support credit ratings
The Board, shareholders and management have a strong commitment to maintain the current credit profile
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Ausgrid's Treasury Policy and Partnership Deed requires that Ausgrid use reasonable endeavours to maintain a bbb/baa2 baseline credit
assessment and not less than bbb-/baa3
Ausgrid has a range of levers available to support credit ratings - these include both operational (e.g. cost efficiency, capex program selection and
timing etc.) and capital management levers (e.g. investment decisions, dividends, equity related funding etc.)
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Distribution policy
Under the Partnership Deeds, each Partnership must distribute at least 85% of its surplus cash within 30 days of the end of each quarter - so long
as paying this distribution will not cause the baseline credit assessment to fall below investment grade
Ausgrid has a proven track record of taking action to support the credit ratings - Board and Shareholders have decided to reinvest dividends for
the three years to June 2022
Ausgrid Together
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