THURSDAY, March 28, 2024
nationthailand

Khon Kaen Sugar keeps ‘A’ rating

Khon Kaen Sugar keeps ‘A’ rating

TRIS Rating has affirmed an “A” company rating for Khon Kaen Sugar Industry Plc (KSL) and also for ratings for senior unsecured debentures of the company

 


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The ratings reflect the company’s long track record in the sugar and sugarcane industry, said a press release. It is one of the leading sugar producers in Thailand, and has diversified into other sugar-related businesses.
The ratings are partially offset by the cyclical nature of sugar prices and the volatility of sugarcane, the operational risks of KSL’s sugar operations in Laos and Cambodia, and the relatively high level of its leverage.
KSL’s sugar production in the 2016-17 growing season ranked it fourth in the industry, with a market share of 7.2 per cent, trailing the Mitr Phol Group (19.7 per cent), the Thai Roong Ruang Group (14.1 per cent), and the Thai Ekkalak Group (9.4 per cent).

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