Natural monopoly in Singapore's power transmission and distribution. Supportive and stable regulatory framework in Singapore. Limited 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 company will remain a core member of the group. We could lower the rating on SPPA if we see signs of a loosening of the company's ties with its parent, which we view as unlikely. We could also lower the rating if we downgrade SingPower, which could happen if: We lower the sovereign rating by three notches; The company revisits its expansion strategy
