S&P lifts Ratchaburi issues

Standard & Poor’s said it affirmed the BBB+ long-term corporate credit rating on Ratchaburi Electricity Generating Holding PCL, along with its axA+ long-term Asean regional scale rating.

The agency also said it raised the long-term issue ratings on all of the company’s guaranteed and outstanding notes to BBB+ from BBB.

The outlook is stable.

The company’s operating performance is expected to remain stable and support the company’s capital structure over the next 24 months, S&P said.

The company benefits from predictable power purchase agreements with its controlling shareholder and key off-taker, state-owned utility Electricity Generating Authority of Thailand, the agency said.

The purchase agreements, which include both availability and energy payments, protect the company from volatility in demand and fuel price risks, S&P said.

This strength is moderated because of the concentration of the company’s generation assets in one location in Thailand and lack of fuel diversity, the agency said.

© 2015 Prospect News.
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