Summary: ETSA Utilities Finance Pty Ltd.

Monopoly electricity network distribution business in South Australia Operations under a stable and established regulatory framework Efficient and simple operations, but expansive service geographic area Exposure to some level of unregulated business Stable and reliable cash flows with visibility to 2020 Modest debt to regulated asset base (RAB) of 75% High capital-expenditure profile The stable outlook on ETSA Utilities Finance Pty Ltd. (and its parent SA Power Networks, SAPN) reflects the company's stable regulated cash flows until June 2020 following the regulatory reset in 2015, and our expectation of no material change to its unregulated activities. These factors should maintain ETSA's funds from operations (FFO) to debt in the range of 13%-14%. We do not expect this metric to strengthen

...Outlook: Stable The stable outlook on ETSA Utilities Finance Pty Ltd. (and its parent SA Power Networks, SAPN) reflects the company's stable regulated cash flows until June 2020 following the regulatory reset in 2015, and our expectation of no material change to its unregulated activities. These factors should maintain ETSA's funds from operations (FFO) to debt in the range of 13%-14%. We do not expect this metric to strengthen further because we believe the management and shareholders have limited incentive to aim for a higher rating over the next two to three years....

Summary