TTCL gets downgraded rating from TRIS
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TRIS Rating has downgraded the company rating of construction engineering company TTCL PLC (TTCL) to “BBB” from “BBB+”. The downgrade reflects TTCL’s weakened operating performance following a precipitous falloff in new contracts signed as well as higher-than-expected leverage, said TRIS.
The rating continued to reflect TTCL’s strengths in EPC (engineering, procurement, and construction) for the industrial segment, its capability to undertake larger projects in Thailand and abroad, as well as its strategic diversification into the power business.
However, these strengths are partially offset by heightened leverage, operating risks of projects abroad, “cyclicality” of the EPC industry, and severe competition, said TRIS.
