Natural monopoly Highly certain cash flows Very high likelihood of extraordinary government support Weak business profiles of parent's other businesses The rating on SP PowerAssets Ltd. (SPPA) reflects the company's monopoly as the sole owner and maintainer of Singapore's electricity transmission and distribution (T&D) assets, and as the sole electricity transmission licensee. The rating also reflects SPPA's high revenue and cash flow certainty, which is supported by a regulated tariff structure till 2013 and a cap on the company's loss of revenues due to lower volumes. We assess SPPA's business risk profile to be "excellent" and its financial risk profile to be "intermediate." SPPA is a wholly owned subsidiary of Singapore Power Ltd. (SingPower: AA-/Stable/--; axAAA/--), which the Singapore government's
