Natural monopoly. High cash flow certainty Adequate financial profile. Expected support from shareholder and government. Weaker business profiles of parent company's other businesses. Some uncertainties related to tariff reset in fiscal 2008. SP PowerAssets Ltd. (SPPA) is a wholly owned subsidiary of Singapore Power Ltd. (SingPower, AA/Watch Neg/--). SPPA owns the electricity transmission and distribution (T&D) network in Singapore. For fiscal 2007 (ended March 31, 2007), SPPA generated operating revenues of Singapore dollar (S$) 1.3 billion, net income of S$513.4 million, and funds from operations (FFO) of S$748.4 million. SPPA contributed about half of SingPower group's EBITDA in fiscal 2007. The current ratings on SingPower, SPPA, and SP AusNet Group (local currency A/Watch Neg/--) do not factor in the business
