Dr. Toemchai Bunnag, Chief Executive Officer of Global Power Synergy Public Company Limited or GPSC, an electricity and utility flagship of PTT group, announced that Fitch Ratings (Thailand) Co.,Ltd. (Fitch Ratings) has initially assigned A+(tha) rating to GPSC with Investment Grade and Stable outlook.
Fitch Ratings mentioned that A+(tha) rating rationales were caused by low volume risk and strong counterparties. Most of GPSC’s revenues derived from contracted power and steam selling to customers with strong credit profiles, including Electricity Generating Authority of Thailand (EGAT) and affiliates of PTT group, together with the expectation of its performance to be increased continuously from project investments.
Meanwhile, GPSC also has been initially ranked BBB- rating by Standard & Poor’s (S&P’s) for its financial creditability with Investment Grade and Stable outlook due to the company’s strong financial status.
S&P’s mentioned that the key factor of BBB- rating assignment was the size of GPSC which was still small scale without many project expansions comparing with its competitors. Also GPSC’s expansion plan in the future may affect the leverage ratio that could be increased. However the financial liquidity and the ability to pay off debts remain in good positions.
“Being rated as a credible company by the two global rating agencies can imply that GPSC’s financial status is in a strong position. The company is still able to continue seeking the investment opportunities for its business expansion and this contributes to increase investors’ confidence as well.” said Dr. Toemchai.