By The Nation
At the same time, it has assigned rating “A-” on GULF’s senior unsecured debentures worth up to Bt10 billion.
The assigned issue rating is one notch below the company rating, reflecting the structural subordination of the proposed debentures compared with the debt obligations at the operating subsidiaries. The proceeds from the proposed debentures will be used to refinance existing debt, and to fund new investments.
The ratings reflect the company’s position as one of the leading power producers in Thailand, its well-diversified portfolio, predictable cash flows from long-term power purchase agreement with Electricity Generating Authority of Thailand rated “AAA/Stable” by Tris Rating and a proven record of developing and operating power plants. The ratings also incorporate completion risk of the two Independent Power Producer projects and the company’s rising financial leverage during the development of the projects.