Natural monopoly in the power transmission and distribution business. Supportive and stable regulatory framework in Singapore. Lack of business and geographic diversity. Good access to bank and capital market financing. Persistently high capital expenditure. The stable outlook on SP PowerAssets Ltd. (SPPA) reflects the outlook on its parent Singapore Power Ltd. (SingPower: AA/Stable/--; axAAA/--) and our expectation that the likelihood of government support to the parent will remain "very high." The outlook also reflects our expectation that SPPA will maintain its stable cash flows and financial risk profile over the next couple of years despite ongoing high capital expenditure. We could lower the rating on SPPA if we downgrade SingPower or, in an unlikely scenario, we see signs of a
