Bangkok--3 Sep--Fitch Ratings
Fitch Ratings (Thailand) Limited has affirmed Gulf Cogeneration Company Limited’s (GCC) THB2.9bn guaranteed debentures maturing April 2016 at National Long-Term ‘AA(tha)’. The Outlook is Negative.
The debentures’ rating is based entirely on the irrevocable and unconditional guarantee of the debentures’ principal and interest payment by Depfa Bank plc (Depfa; ‘BBB+’/Negative).
GCC acts as a financing arm for its related companies, Nong Khae Cogeneration Company Limited (NKCC) and Samuthprakarn Cogeneration Company Limited (SCC). The proceeds from the guaranteed debentures were used to repay GCC’s bank loan and to on-lend to NKCC and SCC. The debentures’ repayment relies on GCC’s cash flow generation and the repayment of inter-company loans from NKCC and SCC.
Fitch does not expect any negative impact on the debentures’ ratings from the unplanned shutdown at NKCC in April 2012. This is mainly because the rating is driven by the guarantee from Depfa. Nevertheless, the incident could put pressure GCC’s liquidity and debt serviceability due to weaker cash flow contribution from NKCC following the shutdown. GCC plans to mitigate cash shortfall by securing additional credit lines from banks or by seeking financial support from its parent, Gulf Electric Public Company Limited.
What Could Trigger A Rating Action?
Any divergence between Depfa’s ratings and Thailand’s ‘A-’ Long-Term Local Currency Issuer Default Rating may affect the debentures’ National Rating. A one-notch change in the International scale ratings of Depfa or Thailand could result in a change of more than one notch in the debentures’ National Rating.
For more information on Depfa’s ratings, see full rating report on Depfa, dated 21 December 2011 and the rating action commentary entitled, “Fitch Affirms HRE Holding and Deutsche Pfandbriefbank AG at ‘A-’, Depfa at ‘BBB+”, dated 17 August 2012, available at www.fitchratings.com.
Contact:
Primary Analyst
Obboon Thirachit
Director
+66 2 655 4757
Fitch Ratings (Thailand) Limited
Wave Place 13th Floor
Wireless Road, Lumpini, Patumwan
Bangkok 10330
Secondary Analyst
Lertchai Kochareonrattanakul
Senior Director
+66 2 655 4760
Committee Chairperson
Buddhika Piyasena
Senior Director
+65 6796 7223