Padaeng Industry given 'BBB-' rating
TRIS Rating has assigned a “BBB-” rating to Padaeng Industry (PDI), the company said in a press release issued on Friday.
The company said the rating reflects the firm’s stable earnings from its existing power projects and sufficient liquidity. However, the rating is partly offset by PDI’s short track records in the power business, high execution risks of its metal recycling project, and expected rising leverage in the near future.
TRIS Rating said PDI is a holding company, investing in renewable power projects and eco-friendly businesses.
The company has decided to shift away from volatile zinc business since 2014 and has undergone massive changes, including closures of its long-established Mae Sod mine, zinc smelter, and roaster plant as well as discharge of hundreds of workers. At the same time, the company also started acquisitions of solar power projects in Thailand and Japan.
Country Group Holdings PLC (CGH), the major shareholder, has played key roles in PDI’s business transformation from zinc mining and trading to sustainable businesses. CGH recruits a new management team, carries out cost-cutting measures, and also revisits potential projects in which PDI planned to invest.
As PDI is undergoing a major transition, TRIS Rating views that its business direction or investment area remains uncertain and may be changed in the future, depending on the strategy of the new management team.
