Natural monopoly. High degree of cash flow certainty. Adequate financial profile. Expected shareholder and government support. Weaker other businesses of the parent company. SP PowerAssets Ltd. (SPPA) is a wholly owned subsidiary of Singapore Power Ltd. (SingPower, AA-/Stable/--). SPPA owns the electricity transmission and distribution (T&D) assets in Singapore. It also holds the sole license for electricity T&D in Singapore. For the year ended March 31, 2004, SPPA and its predecessor entity PowerGrid Ltd. had combined operating revenues of Singapore dollars (S$) 1.25 billion (US$723 million), net income of S$517 million, and funds from operations (FFO; defined as net income, plus noncash and extraordinary expenses, minus noncash and extraordinary incomes) of S$903 million. The rating on SPPA is based on
