Natural monopoly in power transmission and distribution. Supportive and stable regulatory framework in Singapore. Some earnings diversity through associates. Geographic concentration to Singapore. Solid balance sheet. Sustained capital expenditure and returns to shareholders. The stable outlook on Singapore Power Ltd. (SingPower) reflects that on the sovereign credit rating on Singapore (AAA/Stable/A-1+; axAAA/axA-1+) and our opinion that the likelihood of government support to the company will remain very high. We anticipate SingPower will benefit from stable earnings and steer capital expenditure and dividends carefully, so that rising leverage remains within our tolerance for the credit profile. We could downgrade SingPower if: We lower the sovereign rating by three notches; The company revisits its expansion strategy through significant offshore investments, such that
