The 'A ' long-term rating on ETSA Utilities Finance Pty Ltd., the financing arm of ETSA Utilities (collectively ETSA), reflects our view of the support ETSA receives from the group's majority owner Cheung Kong Infrastructure Holdings Ltd. (CKI; A /Watch Neg/--) and CKI's affiliate Hongkong Electric Holdings Ltd. (HEH; A+/Watch Neg/—), including an undertaking by CKI and HEH to maintain minimum financial metrics. We consider the underlying credit rating on ETSA to be 'BBB+', reflecting ETSA'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 ETSA's aggressive capital structure, its significant capital expenditure over the next five
