The ratings on ETSA Utilities Finance Pty. Ltd. reflect the supportiveness of its owners, its natural monopoly in electricity distribution in South Australia, the supportive regulatory regime under which it operates, and its low operational risk. These advantages are offset by the company's modest financial profile. ETSA Utilities Finance Pty. Ltd. is the financing arm of ETSA Utilities Partnership (ETSA Utilities), which is the South Australian electricity distribution business. ETSA Utilities guarantees the debt issued by ETSA Utilities Finance Pty. Ltd. ETSA Utilities is owned by Cheung Kong Infrastructure Holdings Ltd. (CKI, A-/Stable/—) and Hongkong Electric Holdings Ltd. (HKE; local currency, A+/Stable/—), each of which holds 50% of equity. As CKI separately owns 38.2% of HKE, the rating on ETSA
