On Aug. 2, 2004, Standard&Poor's Ratings Services lowered its long-term credit rating on SP PowerAssets Ltd. (SPPA) to 'AA-' from 'AA+', in line with a similar rating action on its parent Singapore Power Ltd.'s (SingPower, AA-/Stable/--). The outlook is stable. The rating was taken off CreditWatch, where it was placed with negative implications on April 27, 2004. SPPA is a wholly owned subsidiary of SingPower. It owns the electricity transmission and distribution (T&D) assets in Singapore. SPPA also holds the license for electricity T&D in Singapore. The rating on SPPA is based on the following strengths: SPPA is a natural monopoly. It is the sole owner of all the electricity T&D assets in Singapore. SPPA also is the
