KEY POINTS:
Port of Tauranga's withdrawal from formal merger discussions with Ports of Auckland will have no immediate impact on Standard & Poor's Ratings Services outlook for the company.
The potential merger had not been factored into the ratings on Port of Tauranga due to the preliminary stage of discussions and significant uncertainties any merger would have faced, Standard & Poor's said today.
Those uncertainties included gaining the approval of both companies, regulatory hurdles, and the future financial policies of a combined entity.
Given the discontinuation of formal merger discussions, Standard & Poor's said it considered Port of Tauranga would continue to face near-term challenges associated with strong competition from Ports of Auckland in container trade.
Consolidation in the global shipping industry could also alter ship calling and trade flows to the port.
But ratings on Port of Tauranga would continue to be underpinned by the company's established regional market position as New Zealand's largest bulk-export port and second-largest container port, the port's moderate diversification from coal and container trade, and its moderate financial profile.
- NZPA
