Natural monopoly in key businesses. Relative geographic and business diversity. Expected shareholder and government support. Weakening financial profile. Singapore Power Ltd. (SingPower) generated operating revenue of Singapore dollar (S$) 5.2 billion and net income of S$0.9 billion for fiscal 2007 (ended March 2007), mainly through its core electricity and gas transmission and distribution (T&D) businesses in Singapore (through 100%-owned SP PowerAssets Ltd. {SPPA; AA/Watch Neg/NR}), and in Australia (through 51%-owned SP AusNet Group {A/Watch Neg/--}). The corporate credit rating on SingPower benefits substantially from cash flow predictability due to the group's operations under exclusive long-term licenses in natural monopolies and stable regimes, and from relatively independent core T&D businesses in Singapore and Australia that give it some diversity. The rating
