OREANDA-NEWS. S&P Global Ratings assigned its 'A-' corporate rating to Integrated Utility Holding N. V. (Aqualectra). The outlook is stable.

The corporate rating on Aqualectra mainly reflects our opinion that the government of Curacao (FC: A-/Stable/A-2, LC: A-/Stable/A-2) almost certainly would provide timely and sufficient extraordinary support to Aqualectra in the event of financial distress.

In accordance with our criteria for government related entities, our expectation of an "almost certain" likelihood of extraordinary support is based on the following:Aqualectra plays a critical role for the government; it is the only provider of electricity and water services in Curacao, and plans and operates the country's electric power and water systems. We believe that this provides a strong economic incentive for the sovereign to support Aqualectra during periods of financial distress. Aqualectra has an integral link to the government of Curacao, which is Aqualectra's sole owner. The government maintains control over Aqualectra, and participates in the appointment of the company's senior management, and defines its strategy and tariffs. Our rating on Aqualectra reflects our assessment of the company's SACP, which represents its credit quality in the absence of extraordinary support or intervention from the government of Curacao, which has an SACP of 'bb-'.

Aqualectra's SACP reflects its position as Curacao's national electric and water utility. It is responsible for the generation, transmission, distribution, and commercialization of electricity in the country. Aqualectra is also responsible for the production, transport, distribution, and supply of potable drinking water and accompanying services. As of Dec. 31, 2015, Aqualectra had 70,558 electricity connections and 72,958 water connections.