The 'BBB' corporate credit ratings on Australian utilities United Energy Distribution Holdings Pty Ltd. (UEDH) and United Energy Distribution Pty Ltd. (UED) reflect our view of the group's natural-monopoly electricity-distribution business and the benefits of an established regulatory framework that provides cash flow certainty. Partially offsetting the group's excellent business profile is the group's aggressive capital structure and, consequently, its weak financial metrics, which we consider are unlikely to improve materially over the medium term. UEDH is the holding company of UED, which is owned by DUET Group (66%, BBB-/Stable/--) and SPI (Australia) Assets Pty Ltd. (34%, SPIAA; A-/Stable/--). The ratings on UEDH and UED reflect our opinion of the companies' consolidated business and financial profiles. Standard & Poor's Ratings...
Companies mentioned in this report are:
- United Energy Distribution Holdings Pty Ltd.
- United Energy Distribution Pty Ltd.
- DUET Group
- SGSP (Australia) Assets Pty Ltd.
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