TRIS Rating assigns a company rating of AA+ with a stable rating outlook to Electricity Generating Public Company Limited (EGCO). The rating reflects EGCOs position as one of the leading power producers in Thailand, with an excellent track record and well-diversified portfolio. The rating also mirrors the company’s predictable cash flows, backed by long-term power purchase agreements (PPAs).
However, these strengths are constrained by an increasingly challenging business environment in the power industry and a looming rise in EGCOs financial leverage in support of its long-term growth plans.
The rating takes into account TRIS view that EGCO is a strategic affiliate of the Electricity Generating Authority of Thailand (EGAT, rated AAA/Stable by TRIS Rating). The rating incorporates a one-notch uplift from EGCOs stand-alone credit profile of aa to reflect the strong support EGCO receives from EGAT.