TRIS Rating Co., Ltd. has affirmed the company rating of Ratchaburi Electricity Generating Holding PLC (RATCH) at “AA-” with “stable” outlook. At the same time, TRIS Rating has affirmed the company rating of RATCH’s subsidiary, Ratchaburi Electricity Generating Co., Ltd. (RATCHGEN), and the ratings of RATCHGEN’s senior secured debentures (RG086A, RG106A) at “AA” with “stable” outlook.
The “AA-” rating of RATCH reflects reliable dividends from RATCH’s wholly-owned operating subsidiary, RATCHGEN, a good quality power plant portfolio and a conservative investment policy. The rating also takes into consideration its potential investments in hydroelectric power projects in Laos and in new independent power producer (IPP) projects in Thailand. While the “stable” outlook reflects the expectation that RATCH will receive reliable dividend income from RATCHGEN and its power plant investments. With Bt5,000-Bt6,000 million in dividends received per annum, RATCH should be able to fund most of its investments with internal cash flow.
The “AA” ratings of RATCHGEN and its secured debentures reflect its stable cash flow from the well-designed project structures, state-of-the-art power plants, years of experience in the power sector, and its proven record of power plant operation management. The ratings also take into consideration the operating risk of the power plants. The “stable” outlook reflects TRIS Rating’s expectation that RATCHGEN will continue to receive stable cash flows from the Ratchaburi power plants and the plants are expected to maintain their operating performance in line with the PPA targets
TRIS Rating reported that RATCH was established in 2000 as a holding company to purchase the Ratchaburi power plant from the Electricity Generating Authority of Thailand (EGAT). As of May 2007, EGAT held a 45% stake in RATCH, followed by the BANPU Group (14.99%), and the Social Security Office (4.91%). Currently, RATCH’s power portfolio comprised five power plants with total electricity generating capacity of 4,501 megawatts (MW). As of September 2007, RATCH’s investments in its five plants totaled Bt22,033 million. In 2006, RATCH received dividend income of Bt5,353 million from its two power plants, RATCHGEN and Tri Energy Co., Ltd. (TECO). RATCHGEN continues to be the major contributor, constituting 81% of RATCH’s total capacity and generating 96% of RATCH’s dividend income.
RATCH’s investment policy has been conservative. All of its power plants have long-term power purchase agreements (PPAs) with EGAT. In addition to the 1,400 MW IPP project in Thailand (Ratchaburi Power Co., Ltd.), which will begin operations very soon, and the hydroelectric power projects in Laos, RATCH also submitted two proposals for the 2007 IPP bidding, with the aggregate installed capacity of 1,600 MW. The preferred bidders are expected to be announced by the end of 2007 and the new PPAs are expected to be signed by June 2008.
TRIS Rating said about RATCHGEN that, the company is a wholly-owned subsidiary of RATCH. RATCHGEN is the largest private power generating company in Thailand, with total installed capacity of 3,645 MW, representing 13% of Thailand’s total installed capacity. EGAT has 25-year PPAs with RATCHGEN, while PTT PLC has a 25-year gas sale agreement (GSA) with the company. RATCHGEN’s operating performance in 2006 was in line with targets. The equivalent availability factor (EAF) of the thermal and combined cycle units was maintained at 95.5 % and 88.6%, respectively. Electricity sales increased by 14.4%, from Bt44,035 million in 2005 to Bt50,373 million in 2006. The debt service coverage ratio (DSCR), without reserve accounts and after net changes in working capital, was 2.0 times in 2006. Though the operating performance in the first half of 2007 remained satisfactory, the scheduled shutdowns for major overhauls of three of the five power plants in the second half of 2007 will reduce RATCHGEN’s operating performance in 2007; however, the company’s performance is expected to be in line with the PPA targets.
TRIS Rating said, the restoration of the Flue Gas Desulfurisation (FGD) system for RATCHGEN’s Thermal Unit 1, following a fire in October 2005, was completed in October 2007. Approximately 97% of total replacement cost of Bt2,154 million will be covered by insurance. -- End
Ratchaburi Electricity Generating Holding PLC (RATCH)
Company Rating: Affirmed at AA-
Rating Outlook: Stable
Ratchaburi Electricity Generating Co., Ltd. (RATCHGEN)
Company Rating: Affirmed at AA
Issue Ratings:
RG086A: Bt7,000 million senior secured debentures due 2008 Affirmed at AA
RG106A: Bt3,000 million senior secured debentures due 2010 Affirmed at AA
Rating Outlook: Stable
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Copyright 2007, TRIS Rating Co., Ltd. All rights reserved. Any unauthorized use, disclosure, copying, republication, further transmission, dissemination, redistribution or storing for subsequent use for any purpose, in whole or in part, in any form or manner or by any means whatsoever, by any person, of the credit rating reports or information is prohibited. The credit rating is not a statement of fact or a recommendation to buy, sell or hold any debt instruments. It is an expression of opinion regarding credit risks for that instrument or particular company. The opinion expressed in the credit rating does not represent investment or other advice and should therefore not be construed as such. Any rating and information contained in any report written or published by TRIS Rating has been prepared without taking into account any recipient’s particular financial needs, circumstances, knowledge and objectives. Therefore, a recipient should assess the appropriateness of such information before making an investment decision based on this information. Information used for the rating has been obtained by TRIS Rating from the company and other sources believed to be reliable. Therefore, TRIS Rating does not guarantee the accuracy, adequacy, or completeness of any such information and will accept no liability for any loss or damage arising from any inaccuracy, inadequacy or incompleteness. Also, TRIS Rating is not responsible for any errors or omissions, the result obtained from, or any actions taken in reliance upon such information.
The “AA-” rating of RATCH reflects reliable dividends from RATCH’s wholly-owned operating subsidiary, RATCHGEN, a good quality power plant portfolio and a conservative investment policy. The rating also takes into consideration its potential investments in hydroelectric power projects in Laos and in new independent power producer (IPP) projects in Thailand. While the “stable” outlook reflects the expectation that RATCH will receive reliable dividend income from RATCHGEN and its power plant investments. With Bt5,000-Bt6,000 million in dividends received per annum, RATCH should be able to fund most of its investments with internal cash flow.
The “AA” ratings of RATCHGEN and its secured debentures reflect its stable cash flow from the well-designed project structures, state-of-the-art power plants, years of experience in the power sector, and its proven record of power plant operation management. The ratings also take into consideration the operating risk of the power plants. The “stable” outlook reflects TRIS Rating’s expectation that RATCHGEN will continue to receive stable cash flows from the Ratchaburi power plants and the plants are expected to maintain their operating performance in line with the PPA targets
TRIS Rating reported that RATCH was established in 2000 as a holding company to purchase the Ratchaburi power plant from the Electricity Generating Authority of Thailand (EGAT). As of May 2007, EGAT held a 45% stake in RATCH, followed by the BANPU Group (14.99%), and the Social Security Office (4.91%). Currently, RATCH’s power portfolio comprised five power plants with total electricity generating capacity of 4,501 megawatts (MW). As of September 2007, RATCH’s investments in its five plants totaled Bt22,033 million. In 2006, RATCH received dividend income of Bt5,353 million from its two power plants, RATCHGEN and Tri Energy Co., Ltd. (TECO). RATCHGEN continues to be the major contributor, constituting 81% of RATCH’s total capacity and generating 96% of RATCH’s dividend income.
RATCH’s investment policy has been conservative. All of its power plants have long-term power purchase agreements (PPAs) with EGAT. In addition to the 1,400 MW IPP project in Thailand (Ratchaburi Power Co., Ltd.), which will begin operations very soon, and the hydroelectric power projects in Laos, RATCH also submitted two proposals for the 2007 IPP bidding, with the aggregate installed capacity of 1,600 MW. The preferred bidders are expected to be announced by the end of 2007 and the new PPAs are expected to be signed by June 2008.
TRIS Rating said about RATCHGEN that, the company is a wholly-owned subsidiary of RATCH. RATCHGEN is the largest private power generating company in Thailand, with total installed capacity of 3,645 MW, representing 13% of Thailand’s total installed capacity. EGAT has 25-year PPAs with RATCHGEN, while PTT PLC has a 25-year gas sale agreement (GSA) with the company. RATCHGEN’s operating performance in 2006 was in line with targets. The equivalent availability factor (EAF) of the thermal and combined cycle units was maintained at 95.5 % and 88.6%, respectively. Electricity sales increased by 14.4%, from Bt44,035 million in 2005 to Bt50,373 million in 2006. The debt service coverage ratio (DSCR), without reserve accounts and after net changes in working capital, was 2.0 times in 2006. Though the operating performance in the first half of 2007 remained satisfactory, the scheduled shutdowns for major overhauls of three of the five power plants in the second half of 2007 will reduce RATCHGEN’s operating performance in 2007; however, the company’s performance is expected to be in line with the PPA targets.
TRIS Rating said, the restoration of the Flue Gas Desulfurisation (FGD) system for RATCHGEN’s Thermal Unit 1, following a fire in October 2005, was completed in October 2007. Approximately 97% of total replacement cost of Bt2,154 million will be covered by insurance. -- End
Ratchaburi Electricity Generating Holding PLC (RATCH)
Company Rating: Affirmed at AA-
Rating Outlook: Stable
Ratchaburi Electricity Generating Co., Ltd. (RATCHGEN)
Company Rating: Affirmed at AA
Issue Ratings:
RG086A: Bt7,000 million senior secured debentures due 2008 Affirmed at AA
RG106A: Bt3,000 million senior secured debentures due 2010 Affirmed at AA
Rating Outlook: Stable
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Copyright 2007, TRIS Rating Co., Ltd. All rights reserved. Any unauthorized use, disclosure, copying, republication, further transmission, dissemination, redistribution or storing for subsequent use for any purpose, in whole or in part, in any form or manner or by any means whatsoever, by any person, of the credit rating reports or information is prohibited. The credit rating is not a statement of fact or a recommendation to buy, sell or hold any debt instruments. It is an expression of opinion regarding credit risks for that instrument or particular company. The opinion expressed in the credit rating does not represent investment or other advice and should therefore not be construed as such. Any rating and information contained in any report written or published by TRIS Rating has been prepared without taking into account any recipient’s particular financial needs, circumstances, knowledge and objectives. Therefore, a recipient should assess the appropriateness of such information before making an investment decision based on this information. Information used for the rating has been obtained by TRIS Rating from the company and other sources believed to be reliable. Therefore, TRIS Rating does not guarantee the accuracy, adequacy, or completeness of any such information and will accept no liability for any loss or damage arising from any inaccuracy, inadequacy or incompleteness. Also, TRIS Rating is not responsible for any errors or omissions, the result obtained from, or any actions taken in reliance upon such information.