We expect Singapore Power Ltd.'s (SingPower) financial risk profile to remain strong after the regulator approved a final rate of return of 5.38% for the remaining four of the five-year period of the company's electricity and gas transmission in Singapore. We now project the company's ratio of funds from operations (FFO) to debt remaining sustainably at above 40% from 2023 (ending March 31, 2023). S&P Global Ratings raised its long-term issuer credit rating on SingPower to 'AA+' from 'AA'. The stable outlook reflects our expectation that SingPower's cash flows will remain visible, underpinned by its predictable regulatory framework with adequate returns on a timely basis. We also expect the company to prudently manage its balance sheet. Our base case assumes
