S&P rates ETSA notes A-

Standard & Poor's said it assigned its A- long-term rating to the proposed $387 million senior secured notes to be issued by ETSA Utilities Finance Pty Ltd. (A-/negative/--) in the United States via a private placement.

The notes will be secured by a fixed and floating charge over the assets of ETSA and will rank equally with all other senior secured debt. The notes will be guaranteed by ETSA Utilities Partnership, and will be used to refinance existing debt and for general corporate purposes. It is expected that the notes' tenor will range from 12 to 15 years.

S&P said the ratings on ETSA Utilities Finance Pty Ltd. reflect the creditworthiness of the company's ultimate controlling owner, Cheung Kong Infrastructure Holdings Ltd. (A-/negative/--), the monopoly position of its incumbent electricity distribution network, and a regulatory regime that adds certainty and stability to cash flows. Offsetting these strengths are the high levels of gearing under the company's aggressive capital structure, modest cash flow protection measures, and the upcoming reset of regulated revenues.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.