Natural monopoly; High cash flow certainty; and Very high likelihood of extraordinary government support. 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 and maintainer of Singapore's electricity transmission and distribution (T&D) assets, and as the sole electricity transmission licensee; and (2) its 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; AA-/Stable/--), which is owned by the Singapore government's investment holding company, Temasek Holdings Pte.
