S&P: SingPower on watch

Standard & Poor's said it placed its AA long-term corporate credit ratings on Singapore Power Ltd. (SingPower) and its wholly owned subsidiary SP PowerAssets Ltd. and its A/A-1 long-term corporate credit ratings on 51%-owned subsidiary SP AusNet Group on CreditWatch with negative implications.

At the same time, S&P said it placed its senior unsecured issue ratings on SingPower's notes on CreditWatch with negative implications.

The CreditWatch placement follows the announcement by SingPower and consortium partner Babcock & Brown Ltd. of their successful bid to acquire the whole of the issued share capital of Alinta Ltd. (BBB/Watch negative) for about A$7.4 billion, the agency said.

After the acquisition, SingPower and Babcock & Brown will discuss the division of Alinta's assets, the agency noted, adding that the size of the proposed acquisition and the potential cash outflow could have an adverse impact on SingPower's financial risk profile.

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