Bangkok--Feb 25--TRIS
Thai Rating and Information Services (TRIS) announced
Wednesday 25 February 1998 in a CreditUpdate that it had lowered the
corporate credit rating of the Electricity Generating Authority of
Thailand (EGAT) to "A+" from "AA"
According to TRIS, with close links to the government and its
strategic importance to the national economy, EGAT's local currency
creditworthiness is identical to that of its parent. The downgrade is
based upon the country's increased economic risk which is greater
than previously anticipated. The main element of uncertainty is the
growing burden Thailand's troubled financial system places on pubilc
finances. In addition, the administration is challenged to balance
the demands for assistance from ailing sectors with the imperative of
maintaining stringent monetary and fiscal policies.
As a result, a weaker-than-expected sovereign-supported
profile will impact negatively on EGAT's future debt servicing
capacity. On the other hand, despite the negative impact the current
economic stress puts on prospects for growth in electricity demand
and EGAT's financial credit strength, EGAT"s credit quality continues
to reflect the significance of the public policy objectives it
accomplishes, the strategic importance of the sector in which it
operates and the favorable government regulatory environment.
Note: Electricity Generating Authority of Thailand TRIS's rating
(EGAT)
Sr debt: Downgraded to A+ from AA
"CreditUpdate" reviews ratings of companies or debt issues that have
already been rated by TRIS. CreditUpdate occurs when new debt instruments
are issued or if significant events have taken place that may impact
a company's ratings or when ratings are cancelled. The update
includes information to supplement the previously published ratings.
End.
Thai Rating and Information Services (TRIS) announced
Wednesday 25 February 1998 in a CreditUpdate that it had lowered the
corporate credit rating of the Electricity Generating Authority of
Thailand (EGAT) to "A+" from "AA"
According to TRIS, with close links to the government and its
strategic importance to the national economy, EGAT's local currency
creditworthiness is identical to that of its parent. The downgrade is
based upon the country's increased economic risk which is greater
than previously anticipated. The main element of uncertainty is the
growing burden Thailand's troubled financial system places on pubilc
finances. In addition, the administration is challenged to balance
the demands for assistance from ailing sectors with the imperative of
maintaining stringent monetary and fiscal policies.
As a result, a weaker-than-expected sovereign-supported
profile will impact negatively on EGAT's future debt servicing
capacity. On the other hand, despite the negative impact the current
economic stress puts on prospects for growth in electricity demand
and EGAT's financial credit strength, EGAT"s credit quality continues
to reflect the significance of the public policy objectives it
accomplishes, the strategic importance of the sector in which it
operates and the favorable government regulatory environment.
Note: Electricity Generating Authority of Thailand TRIS's rating
(EGAT)
Sr debt: Downgraded to A+ from AA
"CreditUpdate" reviews ratings of companies or debt issues that have
already been rated by TRIS. CreditUpdate occurs when new debt instruments
are issued or if significant events have taken place that may impact
a company's ratings or when ratings are cancelled. The update
includes information to supplement the previously published ratings.
End.