On March 9, 2005, Standard&Poor's Ratings Services placed its 'AA-' corporate credit ratings on Singapore Power Ltd. (SingPower) and that of its wholly-owned subsidiary SP PowerAssets Ltd. (SPPA) on CreditWatch with positive implications. The action follows SingPower's announcement that it has agreed to sell its Australian merchant energy business division to CLP Holdings Ltd. (A+/Watch Neg/A-1). The sale is expected to be completed by the end of May 2005, and is valued at about A$2.1 billion (US$1.7 billion). The CreditWatch placement on SingPower reflects the expected improvement in its business and financial risk profile should the sale materialize. As Standard&Poor's expects a material part of the sale proceeds to be used to repay debt at SingPower's
