Standard and Poor's has affirmed its corporate credit ratings on Transpower New Zealand.
Transpower, which has not paid dividends to the government since 2006, will being paying distributions again over the 2011-and-12 financial year.
Standard and Poor's says future distributions are likely to be higher than it had forecast.
The agency has lowered the standalone credit profile of the company to A- from A, because it expects the dividend policy to result in a fundamental step-down in the company's financial metrics.
Standard and Poor's says its credit rating outlook for the company remains stable.