Summary: SP AusNet Group Oct 08

Standard & Poors, October 2008

Abstract
The 'A-' long-term rating on Australian utility SP AusNet Group (SP AusNet; A-/Negative/--) benefits modestly from the 51% majority ownership of the group by Singapore Power Ltd. (SP; AA-/Negative/--) and consequential board and senior management control, and the natural-monopoly position of its regulated businesses, which generate stable and predictable cash flow. The 'AA-' rating on SP incorporates substantial uplift from its parent Temasek Holdings Pte. Ltd. (AAA/Stable/--); however, Standard & Poor's Ratings Services does not expect this support to be fully extended to SP's Australian entities. These strengths are partly offset by SP AusNet's aggressive capital structure and some exposure of its energy distribution businesses to volumetric risk. SP AusNet incorporates SPI PowerNet Pty Ltd. (SPI PowerNet; A-/Negative/--), which holds...

Companies mentioned in this report are: SP AusNet Group,SPI Australia Holdings (Partnership) L.P.,SPI PowerNet Pty Ltd.,SPI Electricity & Gas Australia Holdings Pty Ltd.
Action: Review

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.

SP AusNet Group,SPI Australia Holdings (Partnership) L.P.,SPI PowerNet Pty Ltd.,SPI Electricity & Gas Australia Holdings Pty Ltd.

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