Natural monopoly position A regulated asset with reliable cash flow Relatively straightforward operations High level of planned capital expenditure Exposure to electricity-demand risk could lead to volatility in earnings and financial metrics Gradual de-leveraging given the company's commitment to reduce its net debt-to-RAB ratio to 75% The stable rating outlook reflects our view of the certainty and stability of cash flow from the SA Power's regulated distribution business, with the current regulatory determination applying until June 2015. Over the medium term, given the company's commitment to reducing its net debt-to-regulated asset base (RAB) ratio to 75% by around 2015, we expect FFO-to-interest and FFO-to-debt coverage to continue to be at or more than 3.0x and 15%, respectively. Further, we expect
