(The following was released by the rating agency)
SINGAPORE (Standard & Poor's) Sept. 11, 2012 -- Standard &
Poor's Ratings Services today assigned its 'AA-' issue rating to
an issue of US$500 million in senior unsecured fixed rate notes
by SP PowerAssets Ltd. (SPPA; AA-/Stable/--; axAAA/--). The
notes will be issued under the company's Singapore dollar (S$) 8
billion global medium-term notes program.
We derived the rating on the notes from the 'AA-' long-term
corporate credit rating on SPPA. The corporate credit rating
reflects the company's monopoly as the sole owner and maintainer
of Singapore's electricity transmission and distribution assets,
and as the sole electricity transmission licensee. The rating
also reflects SPPA's high revenue and cash flow certainty, which
is supported by a regulated tariff structure until 2013 and a
cap on the company's loss of revenues due to lower volumes.
We assess SPPA's stand-alone credit profile to be 'a'.
However, the corporate credit rating on SPPA incorporates a
two-notch uplift to reflect our opinion that there is a "very
high" likelihood that the government of Singapore (unsolicited
rating AAA/Stable/A-1+; axAAA/axA-1+) would provide timely and
sufficient extraordinary support to the company in the event of
SPPA is a wholly owned subsidiary of Singapore Power Ltd.
(AA-/Stable/--; axAAA/--), which the Singapore government's
investment holding company, Temasek Holdings (Private) Limited
RELATED CRITERIA AND RESEARCH
-- Rating Government-Related Entities: Methodology And
Assumptions, Dec. 9, 2010
-- Stand-Alone Credit Profiles: One Component Of A Rating,
Oct. 1, 2010
-- Business And Financial Risks In The Investor-Owned
Utilities Industry, Nov. 26, 2008
-- 2008 Corporate Criteria: Analytical Methodology, April