We have affirmed the issuer rating on ETSA Utilities Finance Pty Ltd. (ETSA) at 'A-' and the outlook remains stable. ETSA is the financing arm of the regulated electricity distributor, SA Power Networks (SAPN), in the state of South Australia. SAPN's business remains solid with cash flow visibility to 2020 following the final regulatory outcome in October 2015. We expect that any upside to our forecast cash flows will be passed on to the shareholders to maintain its funds from operations (FFO) to debt at about 13%. The stable outlook reflects SAPN's solid cash flow certainty and that the company will successfully refinance its debt maturities in 2016. On March 29, 2016, Standard&Poor's Ratings Services affirmed its 'A-'
