The 'A-' long-term rating on ETSA Utilities Finance Pty Ltd., the financing arm of ETSA Utilities (collectively ETSA), incorporates our view of the modest level of support from the group's majority owner Cheung Kong Infrastructure Holdings Ltd. (CKI; A-/Stable/--) and CKI's affiliate Hongkong Electric Holdings Ltd. (HEH; A+/Stable/--), including an undertaking to maintain certain minimum financial metrics. We consider the underlying credit quality of ETSA to be 'BBB+' rating, reflecting the group's monopoly electricity-distribution network operation in the state of South Australia (AAA/Stable/A-1+) and high level of cash flow certainty and stability due to its regulated operations. These strengths are partly offset by the company's aggressive capital structure, its significant capital expenditure over the next five years (based on the
