TRIS Rating Co., Ltd. has upgraded the company rating of Ratchaburi Electricity Generating Holding PLC (RATCH) to "AA-" from "A+". The rating reflects stable dividends from its 99.99%-owned operating subsidiary, Ratchaburi Electricity Generating Co., Ltd. (RATCHGEN), its moderately conservative investment policy and the company's strong position to participate in an upcoming new independent power project. However, these strengths are partially offset by a structural subordination of RATCH's creditors and uncertainty about the deregulation of the power industry. While the "stable" outlook reflects the stable dividend income from RATCHGEN. The company is expected to take a prudent and conservative approach when making investment decisions.
At the same time, TRIS Rating has also upgraded the company rating of RATCHGEN to "AA" from "AA-". The upgrade reflects the company's proven record of managing its power plant operations, its stable cash flow from well-designed project structures, state-of-the-art power plants, and the operator's long experience in the power sector. The rating also takes into consideration the operation risk of the power plant and uncertainty about the planned deregulation of the power industry. While the "stable" outlook reflects TRIS Rating's expectation that RATCHGEN will continue to receive stable cash flows from the Ratchaburi power plants. The plants are expected to maintain their operational performance in line with the targets of the power purchase agreement with the Electricity Generating Authority of Thailand (EGAT).
TRIS Rating reported that the current power capacity portfolio of 3,995 MW of RATCH, the 45%-owned subsidiary of EGAT, consists of 3,645 MW from its 99.99%-owned subsidiary, RATCHGEN, and a capacity sharing of 350 MW from Tri Energy Co., Ltd. (TECO), recently increasing its ownership share to 50%. RATCH received the 2004 dividend of Bt5,796 million and Bt241 million from RATCHGEN and TECO respectively. In addition, RATCH has many projects under development which consist of a 25% stake in Ratchaburi Power Co., Ltd. (RPC), a 15% stake in Siam Ethanol Export Co., Ltd. and renewable power plants. RATCH's stable dividends are derived from RATCHGEN's consistent cash flow that is the result of well-designed project structures, state-of-the-art power plants, and the operator's long experience in the power sector. In 2004, the company's revenue was Bt39,714 million, up from Bt35,528 in 2003. Its net income increased from Bt5,424 million in 2003 to Bt6,487 million in 2004.
For RATCHGEN, TRIS Rating said that it is the largest private power generating company in Thailand, with total installed capacity of 3,645 MW, which is equivalent to 14% of Thailand's total installed capacity as of December 2004. The company has 25-year power purchase agreements (PPAs) with EGAT and a 25-year gas sale agreement (GSA) with PTT PLC (PTT). The company's operating performance in 2004 was satisfactory. Its equivalent availability factor (EAF) of the thermal and combined cycle units could be maintained in line with the PPAs at 96% and 92% respectively. Its electricity sales recorded a 11.8% increase, from Bt35,528 million in 2003 to Bt39,714 million in 2004. Its debt service coverage ratio (DSCR) without reserve accounts and after net changes in working capital was 1.7 times in 2004. -- End
Ratchaburi Electricity Generating Holding PLC (RATCH) Company Rating: Upgraded to AA- from A+ Rating Outlook: Stable
Ratchaburi Electricity Generating Co., Ltd. (RATCHGEN) Company Rating: Upgraded to AA from AA- Rating Outlook: Stable
At the same time, TRIS Rating has also upgraded the company rating of RATCHGEN to "AA" from "AA-". The upgrade reflects the company's proven record of managing its power plant operations, its stable cash flow from well-designed project structures, state-of-the-art power plants, and the operator's long experience in the power sector. The rating also takes into consideration the operation risk of the power plant and uncertainty about the planned deregulation of the power industry. While the "stable" outlook reflects TRIS Rating's expectation that RATCHGEN will continue to receive stable cash flows from the Ratchaburi power plants. The plants are expected to maintain their operational performance in line with the targets of the power purchase agreement with the Electricity Generating Authority of Thailand (EGAT).
TRIS Rating reported that the current power capacity portfolio of 3,995 MW of RATCH, the 45%-owned subsidiary of EGAT, consists of 3,645 MW from its 99.99%-owned subsidiary, RATCHGEN, and a capacity sharing of 350 MW from Tri Energy Co., Ltd. (TECO), recently increasing its ownership share to 50%. RATCH received the 2004 dividend of Bt5,796 million and Bt241 million from RATCHGEN and TECO respectively. In addition, RATCH has many projects under development which consist of a 25% stake in Ratchaburi Power Co., Ltd. (RPC), a 15% stake in Siam Ethanol Export Co., Ltd. and renewable power plants. RATCH's stable dividends are derived from RATCHGEN's consistent cash flow that is the result of well-designed project structures, state-of-the-art power plants, and the operator's long experience in the power sector. In 2004, the company's revenue was Bt39,714 million, up from Bt35,528 in 2003. Its net income increased from Bt5,424 million in 2003 to Bt6,487 million in 2004.
For RATCHGEN, TRIS Rating said that it is the largest private power generating company in Thailand, with total installed capacity of 3,645 MW, which is equivalent to 14% of Thailand's total installed capacity as of December 2004. The company has 25-year power purchase agreements (PPAs) with EGAT and a 25-year gas sale agreement (GSA) with PTT PLC (PTT). The company's operating performance in 2004 was satisfactory. Its equivalent availability factor (EAF) of the thermal and combined cycle units could be maintained in line with the PPAs at 96% and 92% respectively. Its electricity sales recorded a 11.8% increase, from Bt35,528 million in 2003 to Bt39,714 million in 2004. Its debt service coverage ratio (DSCR) without reserve accounts and after net changes in working capital was 1.7 times in 2004. -- End
Ratchaburi Electricity Generating Holding PLC (RATCH) Company Rating: Upgraded to AA- from A+ Rating Outlook: Stable
Ratchaburi Electricity Generating Co., Ltd. (RATCHGEN) Company Rating: Upgraded to AA from AA- Rating Outlook: Stable