The 'A-' long-term rating on ETSA Utilities Finance, the financing arm of ETSA Utilities (ETSA), reflects ETSA's monopoly electricity-distribution network operation in the state of South Australia (AAA/Stable/A-1+) and the group's high level of cash flow certainty and stability due to regulated operations. Also underpinning the ratings is the group's majority owner Cheung Kong Infrastructure Holdings Ltd. (CKI; A-/Stable/--) and CKI's affiliate Hongkong Electric Holdings Ltd. (HEH; A+/Stable/--), combined with an undertaking from the shareholders to maintain minimum financial metrics consistent with the current group profile. As the sole electricity distributor in South Australia, ETSA has a robust competitive position. Significant capital and pricing barriers will make it difficult for any new entrant to challenge the company. This, combined with
