TRIS Rating Co., Ltd. has affirmed the company rating of Ratchaburi Electricity Generating Co., Ltd. (RATCHGEN) and the ratings of RATCHGEN’s senior debentures at “AA” with “stable” outlook. The ratings reflect RATCHGEN’s stable cash flow from its long-term power purchase agreements (PPAs) with the Electricity Generating Authority of Thailand (EGAT), the well-structured and state-of-the-art Ratchaburi power plants, as well as the company’s lengthy experience and proven record of power plant management. The ratings also take into account the lower dispatch level of RATCHGEN’s thermal units caused by the start-up of new power plants. However, this factor has had a minimal impact on the company’s cash flow. The “stable” outlook reflects TRIS Rating’s expectation that RATCHGEN will continue to receive stable cash flows from the Ratchaburi power plants. The power units are expected to maintain availability and operating performance in line with the PPA targets.
TRIS Rating reported that RATCHGEN is a wholly-owned subsidiary of Ratchaburi Electricity Generating Holding PLC (RATCH), which is 45% owned by EGAT. RATCHGEN is the largest Independent Power Producer (IPP) in Thailand. Its power plant consists of two thermal units and three combined cycle gas turbine (CCGT) units, with total installed capacity of 3,645 megawatts (MW), representing 12% of Thailand’s total installed capacity as of March 2012. RATCHGEN sells electricity to EGAT under 25-year PPAs and buys gas from PTT PLC under a 25-year gas sale agreement (GSA).
TRIS Rating said, in 2011, the CCGT units continued to outperform the targets, reaching an average plant availability level of 90.1% and a heat rate of 7,222 BTU/kWh. The thermal units could maintain an average availability level as high as 87.8% with a heat rate of 10,060 BTU/kWh. The dispatch levels for both the thermal and CCGT units in 2011 were low at 28.1% and 65.9%, respectively. The low dispatch levels were resulted from a lower demand for electricity and the arrival of new capacity into the power grid. The lower dispatch levels have little impact on the company’s net profit, which is derived mainly from Availability Payment (AP) revenue.
RATCHGEN’s electricity sales in 2011 decreased by 2.1% to Bt41,205 million while its net profit increased by 7.2% to Bt4,092 million. The increase in net profit was resulted from higher AP revenue as dictated in the PPAs, while the decrease in Energy Payment (EP) revenue did not reduce profits due to the pass-through mechanism. In 2011, RATCHGEN’s earnings before interest, tax, depreciation, and amortization (EBITDA) were healthy at Bt9,226 million. The EBITDA interest coverage ratio was 15.3 times. The capital structure continued to improve in accordance with debt repayment. The total debt to capitalization ratio decreased to 39.0% in 2011 from 44.4% in 2010, said TRIS Rating. — End
Company Rating: Affirmed at AA Issue Ratings: RG126A: Bt921.9 million senior debentures due 2012 Affirmed at AA RG129A: Bt904.9 million senior debentures due 2012 Affirmed at AA RG12DA: Bt904.9 million senior debentures due 2012 Affirmed at AA RG133A: Bt955.9 million senior debentures due 2013 Affirmed at AA RG136A: Bt970.4 million senior debentures due 2013 Affirmed at AA RG139A: Bt1,006.8 million senior debentures due 2013 Affirmed at AA RG13DA: Bt1,006.8 million senior debentures due 2013 Affirmed at AA RG143A: Bt1,210.6 million senior debentures due 2014 Affirmed at AA RG146A: Bt1,271.3 million senior debentures due 2014 Affirmed at AA RG149A: Bt1,557.6 million senior debentures due 2014 Affirmed at AA RG14DA: Bt921.9 million senior debentures due 2014 Affirmed at AA RG153A: Bt721.4 million senior debentures due 2015 Affirmed at AA Rating Outlook: Stable
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