Natural monopoly. High degree of cash flow certainty. Adequate financial profile. Expected support from shareholder and government. Weaker business profiles of parent company's other businesses. 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) network in Singapore. For the year ended March 31, 2006, SPPA generated operating revenues of Singapore dollars (S$) 1.29 billion (US$813 million), net income of S$402 million, and funds from operations (FFO) of S$773 million. It also contributed 51% of SingPower group EBITDA in fiscal 2006. The rating on SPPA is based on the following strengths: SPPA is a natural monopoly. It is the sole owner of Singapore's electricity T&D assets, and
