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 Expected substantial increase in capital expenditure over the next five years High shareholder expectations The 'A-' long-term rating on ETSA Utilities Finance Pty Ltd., the financing arm of ETSA Utilities (collectively ETSA), incorporates our view of the modest level of support from the group'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 certain minimum financial metrics. We consider the underlying credit quality of ETSA to be 'BBB+' rating, reflecting the group's
