TRIS Rating Co., Ltd. has affirmed the company rating of Ratchaburi Electricity Generating Co., Ltd. (RATCHGEN) at "AA". At the same time, TRIS rating has assigned the ratings of RATCHGEN's proposed Bt7,000 million and Bt3,000 million senior secured debentures at "AA". The rating outlook remains "stable". The ratings reflect the company's stable cash flow from well-designed project structures, state-of-the-art power plants, the operator's long experience in the power sector and the company's proven record of managing its power plant operations. The ratings also take into consideration the operation risk of the power plants 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 PPA targets. Although, the relaxed covenants and conditions of the new refinancing package provide the company more flexibility in managing its assets, management has confirmed with TRIS Rating that RATCHGEN will not create additional debt. New major investments will be made under its parent, Ratchaburi Electricity Generating Holding PLC (RATCH). In addition, the discipline to internally set aside cash in debt reserve account will be maintained.
TRIS Rating reported that RATCHGEN is a wholly-owned subsidiary of RATCH, which is 45% owned by the Electricity Generating Authority of Thailand (EGAT). RATCHGEN 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. 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 an annual increase of 11.8%, 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.
TRIS Rating said that the issuances of the secured debentures are part of RATCHGEN's total refinancing with its existing lenders. Its total existing debt worth Bt34,262 million as of 30 June 2005 will be refinanced through Bt24,262 million in bank loans and Bt10,000 million in debentures. The company's lenders and debentureholders will share, on a parri passu basis, the collateral package under the security sharing agreement. The shared collateral consists of mortgage of land, buildings, machinery and assignment of insurance policy. -- End
Ratchaburi Electricity Generating Co., Ltd. (RATCHGEN) Company Rating: AA Issue Ratings: RG#1/2005: Bt7,000 million senior guaranteed debentures due 2008 AA RG#2/2005: Bt3,000 million senior guaranteed debentures due 2010 AA Rating Outlook: Stable
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 PPA targets. Although, the relaxed covenants and conditions of the new refinancing package provide the company more flexibility in managing its assets, management has confirmed with TRIS Rating that RATCHGEN will not create additional debt. New major investments will be made under its parent, Ratchaburi Electricity Generating Holding PLC (RATCH). In addition, the discipline to internally set aside cash in debt reserve account will be maintained.
TRIS Rating reported that RATCHGEN is a wholly-owned subsidiary of RATCH, which is 45% owned by the Electricity Generating Authority of Thailand (EGAT). RATCHGEN 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. 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 an annual increase of 11.8%, 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.
TRIS Rating said that the issuances of the secured debentures are part of RATCHGEN's total refinancing with its existing lenders. Its total existing debt worth Bt34,262 million as of 30 June 2005 will be refinanced through Bt24,262 million in bank loans and Bt10,000 million in debentures. The company's lenders and debentureholders will share, on a parri passu basis, the collateral package under the security sharing agreement. The shared collateral consists of mortgage of land, buildings, machinery and assignment of insurance policy. -- End
Ratchaburi Electricity Generating Co., Ltd. (RATCHGEN) Company Rating: AA Issue Ratings: RG#1/2005: Bt7,000 million senior guaranteed debentures due 2008 AA RG#2/2005: Bt3,000 million senior guaranteed debentures due 2010 AA Rating Outlook: Stable