CH Karnchang to issue new debentures
TRIS Rating has affirmed the company rating of CH Karnchang PLC (CK) and the ratings of CK’s outstanding senior unsecured debentures at A-.
At the same time, TRIS Rating has assigned a rating of A- to CK’s proposed issue of up to Bt2 billion in senior unsecured debentures, due within eight years. The company will use the proceeds from the new debentures to repay some of its existing loans.
The ratings reflect CK’s position as a top-tier contractor, its ability to undertake large-scale and sophisticated construction projects, as well as the synergy and financial flexibility the company gains from its strategic investments.
These strengths are partially offset by the cyclicality of and stiff competition in the engineering and construction industry, as well as the company’s high financial leverage, the agency said.
