Bangkok--27 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).
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 on-lend to NKCC and SCC. The debentures’ repayment depends on GCC’s cash flow generation and the repayment of inter-company loans by NKCC and SCC.
Rating Sensitivities
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 credit update report on Depfa, dated 26 June 2014 and the rating action commentary entitled, “Fitch Affirms Depfa at 'BBB+' On Announced Transfer to FMS WM”, dated 20 May 2014, available at www.fitchratings.com.