Bulletin: SingPower's Divestment Of AusNet Stake Supports Debt Reduction

SINGAPORE (S&P Global Ratings) Jan. 28, 2022--Singapore Power Ltd.'s planned divestment of its 32.74% stake in AusNet Services Ltd. for about A$3 billion (based on cash amount of A$2.65 per AusNet share announced on Jan. 28, 2022) will help strengthen the company's balance sheet. S&P Global Ratings expects Singapore Power's (SingPower; AA+/Stable/--) leverage metrics to remain in line with the current rating level, maintaining a ratio of adjusted funds from operations (FFO) to debt at above 40% over fiscal years 2023 (ending March 2023) and 2024. SingPower currently holds 32.74% of Australia-based AusNet. On Jan. 28, 2022, AusNet's shareholders voted in favor of the proposed full takeover by a consortium led by Canada's Brookfield Asset Management Inc. The acquisition is

...January 28, 2022 SINGAPORE (S&P Global Ratings) Jan. 28, 2022--Singapore Power Ltd.'s planned divestment of its 32.74% stake in AusNet Services Ltd. for about A$3 billion (based on cash amount of A$2.65 per AusNet share announced on Jan. 28, 2022) will help strengthen the company's balance sheet. S&P Global Ratings expects Singapore Power's (SingPower; ##+/Stable/--) leverage metrics to remain in line with the current rating level, maintaining a ratio of adjusted funds from operations (FFO) to debt at above 40% over fiscal years 2023 (ending March 2023) and 2024. SingPower currently holds 32.74% of Australia-based AusNet. On Jan. 28, 2022, AusNet's shareholders voted in favor of the proposed full takeover by a consortium led by Canada's Brookfield Asset Management Inc. The acquisition is subject to court approvals. We project net cash inflow for SingPower of about Singapore dollars (S$) 2.5 billion from divestment proceeds and EBITDA discontinuance of S$80 million-S$90 million per year...

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