Monopolistic electricity-distribution network operation in the state of South Australia High level of cash flow certainty and stability due to regulated operations Supportive majority ownership by strongly rated CKI and HEH Aggressive capital structure Modest cash flow coverage exposed to upcoming regulatory price reset in July 2010 The 'A-' long-term rating on ETSA Utilities Finance Pty Ltd., the financing arm of ETSA Utilities (collectively ETSA), incorporates support from the Australian utility's majority owner Cheung Kong Infrastructure Holdings Ltd. (CKI; A-/Stable/--) and CKI's affiliate Hongkong Electric Holdings Ltd. (HEH; A+/Stable/--), including an undertaking to maintain minimum financial metrics consistent with the rating. The underlying credit quality of ETSA is 'BBB+', reflecting the group's monopoly electricity-distribution network operation in the state of
