Fitch lowers Singapore Power

Fitch Ratings downgraded Singapore Power's senior unsecured rating to A+ from AA+ and removed it from Rating Watch negative, where it was placed on April 27. The outlook is stable.

Fitch said the downgrade reflects the substantial change in Singapore Power's financial and business risk profile following its acquisition in July of the assets of TXU Australia (BBB+) from TXU Corp. (BBB-).

"The greater weight of unregulated businesses resulting from the acquisition has diluted the predictability of SP's cash flows and weakened its ability to support leverage. This, combined with significant new debts from the acquisition, compounded the negative impact on SP's rating," said Charles Chang, Fitch's director of global power.

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