TRIS affirms BEM ratings, assigns ‘A’ to new debentures
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TRIS Rating has affirmed both the company rating for Bangkok Expressway and Metro (BEM) and the rating for its outstanding senior unsecured debentures at ‘A’.
At the same time, TRIS assigned an ‘A’ rating to the listed company’s proposed issue of up to Bt5 billion in senior unsecured debentures.
The proceeds from the new debentures will be used for investment in the MRT Blue Line and for working capital.
The ratings reflect BEM’s strong business profile, supported by stable and predictable operating cash flow and the growth prospects in the MRT segment.
These strengths are partially offset by uncertainty over the renewal of the urban-sector expressway concession that expires in 2020, plus rising leverage from new investments in MRT projects, Fitch said.
