Bangkok--29 Aug--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.
Key Rating Drivers
Guaranteed by Depfa: 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).
Depfa’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘BBB+’ is one notch below Thailand’s ‘A-’ Long-Term Local-Currency IDR, which correlates with ‘AA(tha)’ on the Thai National Rating scale. The Negative Outlook on the debenture rating reflects the Outlook of the guarantor, Depfa.
Financing vehicle: 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.
Rating Sensitivity
Any divergence between Depfa’s rating 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 rating 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 credit update report on Depfa, dated 27 November 2012 and the rating action commentary entitled, “Fitch Affirms Depfa Bank at ‘BBB+’; Negative Outlook”, dated 16 July 2013, available at www.fitchratings.com.