TRIS Rating Co., Ltd. announces today that the ratings for bonds issued by the Energy Fund Administration Institute (EFAI) will not be immediately revised following the 26 April 2006 meeting of energy-related government officers. That meeting resolved to reduce the reserve imposed on diesel, which is paid to the Oil Fund, from Bt1.95 to Bt0.95 per liter, effective 28 April 2006.
TRIS Rating said that the change in the reserve imposed on diesel of around Bt1 per liter will not affect EFAI’s bond ratings as TRIS Rating believes that EFAI will continue to receive government support to ensure that EFAI’s creditors receive timely payment of all interest and principal. The ratings are also based on the National Energy Policy Council (NEPC) resolution of 25 August 2005 to support the Committee on Energy Policy Administration (CEPA), which manages the Oil Fund and sets the rates at which reserves are imposed to ensure that EFAI is able to meet its debt obligations. However, TRIS Rating will closely monitor oil consumption from the impact of high oil prices and further government policies that might affect the liquidity of the Oil Fund.
EFAI was established in 2003 by a Royal Decree B.E. 2546 as a public organization under the supervision of the Ministry of Energy. EFAI’s role is to facilitate the government’s policy of reducing the economic and social effects of high and volatile oil prices. EFAI is responsible for raising funds to be used by the Oil Fund to stabilize domestic retail oil prices.
The current ratings and outlook TRIS Rating has assigned to EFAI’s senior bonds are “AA-/Stable”. — End
Energy Fund Administration Institute (EFAI)
Issue Ratings:
EFAI06OA:Bt8,800 million senior bonds due 2006 AA-
EFAI07OA:Bt8,800 million senior bonds due 2007 AA-
EFAI08OA:Bt8,800 million senior bonds due 2008 AA-
Rating Outlook: Stable