Tuesday, September 11, 2012

TEXT-S&P Rates SP PowerAssets' Sr Unsecd Notes 'AA-'

(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

financial distress.

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

(AAA/Stable/A-1+), owns.

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

15, 2008

Source: http://news.yahoo.com/text-p-rates-sp-powerassets-sr-unsecd-notes-063457503--finance.html

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