Research Update: Singapore Power And Subsidiary SP PowerAssets Outlooks Revised To Positive; 'AA' Ratings Affirmed

We expect Singapore Power Ltd.'s (SingPower) financial risk profile to continue to remain stable, with the company's ratio of funds from operations (FFO) to debt sustainably at 30%-35%, providing the company with significant financial flexibility and headroom. This is despite our expectation of lower regulated returns for the next regulatory tariff period from April 2020. On Nov. 28, 2019, S&P Global Ratings revised its outlook on SingPower to positive from stable, and affirmed the 'AA' long-term issuer credit rating on the company. SingPower's primary subsidiary, SP PowerAssets Ltd. (SPPA), is the sole owner and operator of electricity transmission and distribution (T&D) company. Concurrently, we revised the outlook on SPPA to positive from stable and affirmed our long-term issuer credit rating

...- We expect Singapore Power Ltd.'s (SingPower) financial risk profile to continue to remain stable, with the company's ratio of funds from operations (FFO) to debt sustainably at 30%-35%, providing the company with significant financial flexibility and headroom. This is despite our expectation of lower regulated returns for the next regulatory tariff period from April 2020. - On Nov. 28, 2019, S&P Global Ratings revised its outlook on SingPower to positive from stable, and affirmed the '##' long-term issuer credit rating on the company. SingPower's primary subsidiary, SP PowerAssets Ltd. (SPPA), is the sole owner and operator of electricity transmission and distribution (T&D) company. - Concurrently, we revised the outlook on SPPA to positive from stable and affirmed our long-term issuer credit rating on the company and long-term issue rating on SPPA's senior unsecured notes at '##'. - The positive outlook on SingPower reflects the possibility we may raise the rating over the next six-12...

Research Update