QTC rating tumbles to ‘BB+’
TRIS Rating has downgraded the company rating of QTC Energy PLC to “BB+” from “BBB-”, reflecting a further drop in the operating results in the transformer segment and a dismal outlook for the domestic market for electrical transformers.
The rating reflects QTC’s moderate competitive position, growth opportunities in export markets, and predictable cash flows from the solar power segment.
However, these strengths are weighed down by the intense competition in the domestic transformer market, and the execution risks associated with new power projects.
In addition, QTC’s strategic direction remains unclear due to changes in shareholders during the past few years.
