Research Update: ETSA Utilities Finance Pty Ltd. Ratings Affirmed At 'A-'; Outlook Stable

ETSA Utilities Finance Pty Ltd.'s imminent regulatory reset will weaken metrics, but we expect the metrics to be consistent with ETSA's revised financial policy and current rating. ETSA's updated financial policy targets funds from operations (FFO) to debt of greater than 10%, down from 13%, indicating that management may tolerate a lower level of headroom in its metrics than what we previously anticipated. On March 23, 2020, S&P Global Ratings affirmed its 'A-' issuer credit rating on ETSA and issue ratings on the company's senior unsecured debt. The stable outlook reflects our expectation that the company will manage its financial profile in line with its revised policies over the next regulatory period. The stable outlook on ETSA (and its parent

...- ETSA Utilities Finance Pty Ltd.'s imminent regulatory reset will weaken metrics, but we expect the metrics to be consistent with ETSA's revised financial policy and current rating. - ETSA's updated financial policy targets funds from operations (FFO) to debt of greater than 10%, down from 13%, indicating that management may tolerate a lower level of headroom in its metrics than what we previously anticipated. - On March 23, 2020, S&P Global Ratings affirmed its 'A-' issuer credit rating on ETSA and issue ratings on the company's senior unsecured debt. - The stable outlook reflects our expectation that the company will manage its financial profile in line with its revised policies over the next regulatory period....

Research Update