The rating on SP PowerAssets Ltd. (SPPA) reflects (1) the company's natural monopoly, as the sole owner of Singapore's electricity transmission and distribution (T&D) assets and the sole electricity transmission licensee; and (2) high revenue and cash flow certainty in the medium term, supported by a regulated tariff structure valid for a five-year period to 2013. The regulator has also capped SPPA's loss of revenues due to lower volumes. SPPA is a wholly owned subsidiary of Singapore Power Ltd. (SingPower). Standard&Poor's believes that SPPA's credit quality benefits significantly from support from SingPower's parent, Temasek Holdings Pte. Ltd. (AAA/Stable/--), which is owned by the government of Singapore (AAA/Stable/A-1+). Standard&Poor's believes Temasek would support SPPA if the utility
