The ratings on ETSA Utilities Finance Pty Ltd. take into account support provided by the company's ultimate controlling owner, the monopoly position of its incumbent electricity distribution network, and a regulatory regime that adds certainty and stability to cash flows. Offsetting these strengths are the high levels of gearing under the company's aggressive capital structure, modest cash-flow-protection measures, and the upcoming reset of regulated revenues. ETSA Utilities Finance Pty Ltd. is the financing arm of and is wholly owned by ETSA Utilities Partnership (ETSA Utilities). ETSA Utilities guarantees the debt issued by ETSA Utilities Finance, and the rating on ETSA Utilities Finance is based on the consolidation of all entities within the ETSA Utilities group. The underlying credit quality of
