Singapore Power Limited (SPSP)

Singapore Power Limited's credit strength remains that of a highly defensive, support-inclusive Singapore regulated-utility group. The FY2026 audited results indicate broadly stable credit quality rather than a rapid change in direction: RDA-inclusive profit rose, the group retained a substantial equity base, it generated S$2.03 billion of operating cash flow, and the prior November 2025 USD700 million maturity was no longer listed in the FY2026 year-end schedule. The probability of a sharp near-term deterioration appears low in the normal operating case because the core electricity and gas networks are essential and embedded in regulated frameworks. The direction could change more quickly if regulatory recovery, capex, dividends, operating resilience and refinancing conditions deteriorated together.

The central support is not a single-year profit figure. It is the combination of essential network functions, price-regulated allowed-revenue mechanisms, the financial capacity demonstrated in the audited cash-flow and debt data, Temasek ownership, and established access to debt markets. The FY2026 cash-flow statement is particularly useful because it shows actual repayment and borrowing activity as well as operating and investment flows. It resolves the prior factual uncertainty about whether the November 2025 USD700 million note remained outstanding, while leaving the exact funding mix and future market terms as monitoring matters.

The main constraints are also clear. Operating cash flow fell year on year, cash ended lower, capex remained high and RDA means accounting earnings cannot be read as cash in isolation. The lower FY2026 dividend improved annual headroom, but no source in the current set establishes a permanent lower-distribution policy. The group also has non-regulated and overseas activities whose risks differ from the Singapore T&D core. These issues do not impair the current credit view, but they define the conditions under which the high-grade profile would weaken.