TEXT-S&P: DUET results meet expectations; challenges remain

(The following statement was released by the rating agency)

Aug 29 - Standard & Poor's Ratings Services today said that
DUET Group's (DUE.AX) (BBB-/Stable/--) reported results for
fiscal 2008 were largely in line with our expectations for the
rating. The results demonstrate the benefits DUET receives
through its reasonably diverse underlying operating assets.

The group's key challenge will be maintaining the
creditworthiness of its underlying assets, given that the rating
outlooks on four of its five companies are currently on negative.
The negative outlooks largely relate to weakness or potential
weakening in financial metrics at the asset operating companies
if appropriate capital management for current and potential
growth projects is not applied over the near term. Among its
assets, United Energy Distribution Pty Ltd. (UED;
BBB/Negative/--) and DBNGP Trust (BBB-/Negative/--) contributed
about 63% of cash flows in 2008 and are expected to continue to
account for more than 50% of DUET's future cash flows.

If the credit quality of its portfolio were to deteriorate,
particularly for UED and DBNGP, the rating on DUET could come
under downward pressure.