ETSA operating arm SAPN's business remains solid with cash flow visibility to 2020 when the next regulatory reset is due. We expect that any upside to our forecast cash flows may be passed on to ETSA's shareholders to maintain ETSA's FFO to debt no lower than 13%, or used as a buffer in the lead-up to the next reset. We are affirming the ratings on ETSA and its related debt at 'A-'. The stable outlook reflects SAPN's solid cash flow certainty and the management's policy of maintaining the metrics at current levels. On March 21, 2018, S&P Global Ratings affirmed its 'A-' long-term issuer credit rating on ETSA Utilities Pty Ltd. and issue rating on the company's senior unsecured debt.
