SP PowerAssets Ltd.

Overview Key strengths Key risks Predictable cash flow from regulated electricity transmission and distribution (T&D) assets to March 2025, supported by regulatory framework with long track record. High capital spending due to ageing transmission network. Sole owner and operator of Singapore's electricity T&D networks. Lack of geographic diversity, with T&D assets only based in Singapore. Core status to Singapore Power Ltd. (SingPower) reflected in rating via three-notch uplift from stand-alone credit profile (SACP). In April 2021, the Energy Market Authority (EMA) finalized SPPA?s weighted average cost of capital (WACC) at 5.38% for the remaining four years of the five-year regulatory period ending March 2025. We expect the regulatory framework with long track record to continue to support SPPA?s excellent business

...With regulatory rate of return now finalized, SP PowerAssets Ltd. (SPPA) has strong cash flow visibility for the next four years. In April 2021, the Energy Market Authority (EMA) finalized SPPA's weighted average cost of capital (WACC) at 5.38% for the remaining four years of the five-year regulatory period ending March 2025. We expect the regulatory framework with long track record to continue to support SPPA's excellent business position....

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