SP PowerAssets Ltd. Dec 10

Standard & Poors, December 2010

Abstract
Natural monopoly; High cash flow certainty; and Very high likelihood of extraordinary government support. Weaker business profiles of parent company's other businesses. The rating on SP PowerAssets Ltd. (SPPA) reflects the company's monopoly as the sole owner and maintainer of Singapore's electricity transmission and distribution (T&D) assets, and as the sole electricity transmission licensee. It also reflects SPPA's high revenue and cash flow certainty. This is supported by a regulated tariff structure valid for a five-year period to 2013 and a cap on the company's loss of revenues due to lower volumes. SPPA is a wholly owned subsidiary of Singapore Power Ltd. (SingPower; AA-/Stable/--), which is owned by the Singapore government's investment holding company, Temasek Holdings Pte. Ltd. (AAA/Stable/--). We...

Companies mentioned in this report are: SP PowerAssets Ltd.,Singapore (Republic of) (Unsolicited Ratings),Jemena Ltd.,SPI Electricity Pty Ltd.,SPI Australia Holdings (Partnership) L.P.,Singapore Power Ltd.,SPI PowerNet Pty Ltd.,SPI Australia Finance Pty Ltd.,SPI Electricity & Gas Australia Holdings Pty Ltd.,SPI Networks (Gas) Pty Ltd.,SPI Networks Pty Ltd.,SP AusNet Group,SPI (Australia) Assets 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.

Research Type: Full Analysis

SP PowerAssets Ltd.,Singapore (Republic of) (Unsolicited Ratings),Jemena Ltd.,SPI Electricity Pty Ltd.,SPI Australia Holdings (Partnership) L.P.,Singapore Power Ltd.,SPI PowerNet Pty Ltd.,SPI Australia Finance Pty Ltd.,SPI Electricity & Gas Australia Holdings Pty Ltd.,SPI Networks (Gas) Pty Ltd.,SPI Networks Pty Ltd.,SP AusNet Group,SPI (Australia) Assets Pty Ltd.

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