No flood impact on power generators' ratings: S&P
Floods may threaten some of their power plants, but the ratings of power generators in Thailand including the Electricity Generating Authority of Thailand (Egat) are not yet affected.
Standard & Poor's Ratings Services said today that its ratings Egat (BBB+/Stable) and Ratchaburi Electricity Generating Holding Plc (BBB+/Stable) are unaffected by large-scale flooding in the country.
"We understand that the flooding has not significantly affected Egat's power generation plants and transmission networks. Nevertheless, we expect the company's sales will decline in the last quarter of 2011. The flood-related shutdown of several factories and warehouses will lower electricity demand from the industrial segment in the last quarter," S& P said in a statement.
Meanwhile, Ratchaburi's power generation plants are primarily located in Ratchaburi province, which has not been affected by the floods. In addition, the company's cash flows are protected from any demand-side risk because its power purchase agreements with EGAT ensure steady capacity payments against agreed levels of electricity availability and heat rate.
