Natural monopoly; High cash flow certainty; and Expected support from shareholder and government. Weaker business profiles of parent company's other businesses. The rating on SP PowerAssets Ltd. (SPPA) reflects (1) the company's natural monopoly, as the sole owner of Singapore's electricity transmission and distribution (T&D) assets and the sole electricity transmission licensee; and (2) high revenue and cash flow certainty in the medium term, supported by a regulated tariff structure valid for a five-year period to 2013. The regulator has also capped SPPA's loss of revenues due to lower volumes. SPPA is a wholly owned subsidiary of Singapore Power Ltd. (SingPower). Standard&Poor's believes that SPPA's credit quality benefits significantly from support from SingPower's parent, Temasek Holdings Pte. Ltd.
