The upgrade reflects CKPower's strengthened debt structure, enhanced financial stability, and promising renewable energy portfolio, positioning it for sustainable long-term growth.
Mr. Thanawat Trivisvavet, Managing Director of CK Power Public Company Limited (SET: CKP), one of the region's largest producers of electricity from renewables with one of the lowest carbon footprints, announced that TRIS Rating Co., Ltd. (TRIS Rating) has upgraded the company's issue rating from "BBB+" to "A-," effective March 31, 2025, while affirming its company rating at "A-" with a "stable" outlook. This rating upgrade reflects CKPower's strengthened debt structure achieved through effective debt management, a gradual reduction of subsidiary debt, and strong debt servicing capacity. These factors have collectively reinforced the Company's overall financial stability.
Mr. Thanawat explained that the debenture issue rating upgrade is attributable to the gradual reduction of long-term debts at its subsidiaries, Nam Ngum 2 Power Company Limited (NN2) and Bangpa-in Cogeneration Limited (BIC), which have lowered the Company's subordination risk relative to its subsidiaries. This, coupled with its strong Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) and effective debt management, has enabled the Company to maintain robust debt servicing capacity despite global economic volatility. Most importantly, TRIS Rating remains highly confident in CKPower's consistent cash flow generation, supported by long-term Power Purchase Agreements (PPAs) with the Electricity Generating Authority of Thailand (EGAT) and a portfolio of high-potential renewable energy assets, which underpins the Company's long-term stable and sustainable growth.
CKPower has continued to maintain a robust financial position, with a liquidity ratio of 1.86 as of December 31, 2024, an increase of 0.18 from the previous year, demonstrating the Company's effective liquidity management, Meanwhile, its net interest-bearing debt to shareholders' equity ratio remains low at 0.52. The "stable" rating outlook reflects TRIS Rating's confidence in CKPower's ability to maintain solid operating performance and generate strong cash flow from its diverse power plants portfolio.
As part of its 2025-2030 action plan,CKPower is expanding its installed capacity through solar power projects under both Private Power Purchase Agreements (PPAs) and the second phase of the government's renewable energy auctions. The company is also selling Renewable Energy Certificates (RECs) to further support clean energy adoption. Additionally, the first phase of solar projects developed in collaboration with Bangkok Expressway and Metro Public Company Limited (BEM) are on track for completion with electricity sales to BEM expected to be fully operational by the second quarter of 2025. Meanwhile the Luang Prabang Hydroelectric Power Project had achieved 42% construction progress as of year-end 2024 and remains on schedule for its commercial operation date (COD) in 2030. CKPower remains committed to supporting and driving innovation in energy conservation, enhancing power generation efficiency, and promoting energy conservation awareness across the company's entire value chain. The company is also actively working toward its goal of achieving net-zero greenhouse gas emissions by 2050.