TEXT-S&P Rates ETSA Utilities Finance Pty Ltd.'s Bond Issue 'A-'
(The following was released by the rating agency)
SYDNEY (Standard & Poor's) Nov. 20, 2012--Standard & Poor's Ratings Services today said that it had assigned its 'A-' long-term rating to ETSA Utilities Finance Pty Ltd.'s (A-/Stable/--) proposed A$200 million, senior unsecured, medium-term notes issue. The notes are to be issued under ETSA Utilities Finance Pty Ltd.'s existing A$1 billion medium-term notes program. ETSA Utilities Finance Pty Ltd. is the finance arm of SA Power Networks (collectively SA Power Networks). The proceeds of the bond issue will be used to predominantly refinance a A$225 million syndicated bank facility maturing in April 2013.
The 'A-/Stable' corporate credit rating on SA Power Networks, the sole electricity distributor in the State of South Australia (AA/Stable/A-1+), reflects our view of the company's adequate liquidity and high level of cash-flow certainty and stability, given that most of SA Power Networks' income is derived from a regulated distribution business. We consider these strengths to be partly offset by our view of the company's "significant" financial-risk profile.