TRIS Rating Announces “Negative” CreditAlert for Ratings of “Rojana” and “TICON”from Severe Flooding in Ayudhya and Many Areas of Thailand

TRIS Rating Co., Ltd. announces today that it has placed CreditAlert with “negative” implications for the company

rating of Rojana Industrial Estate PLC (Rojana) as well as the company and issue ratings of TICON Industrial Connection PLC

(TICON). The rating action follows the severe flooding in Rojana Industrial Park in Ayudhya province and many areas in

Thailand, including the operating sites of TICON, since 8 October 2011.

TRIS Rating reported that the heavy rainfall has led to flooding in many areas in Thailand since August 2011. The

severe flooding began to hit Ayudhya province in the beginning of October 2011 and flood waters have since inundated

several industrial estates in Ayudhya, including Rojana Industrial Park, the main industrial estate of Rojana. Despite the

6.5-meter high earthen dikes protecting the Rojana Industrial Park, the estate was still flooded. All companies in the

industrial park have stopped operations. Rojana’s 267 megawatt (MW) gas-fired power plants, located in Rojana Industrial

Park, halted operations and Rojana declared force majeure to all parties concerned. The floods will weaken the financial

profile of Rojana inevitably as the power plants, which generated 60% of total revenue in the first half of 2011, will

likely to cease operation for three to six months after the flood water recedes. However, the damage will be partly

alleviated under the property damage insurance and business interruption insurance. The severity of the effect to Rojana’s

credit rating will depend on the length of flooding period, the time needed to resume operations of all customers in the

industrial park, and the capital expenditures needed to repair the power plants and the infrastructure in the industrial

park.

TRIS Rating said, on 11 October 2011, TICON announced that all factories and warehouses for rent, located in

Rojana Industrial Park, were flooded. The flooded properties comprised 30 factories and three warehouses totaling 107,324

square meters (sq.m.). As of September 2011, TICON’s total leased area was 514,025 sq.m. and located in 13 locations. The

flooded area accounted for 21% of TICON’s total leased area and contributed 22% of total rental revenue in the first half

of 2011. However, TICON’s factories and warehouses for rent located in other industrial estates, such as Hi-Tech

Industrial Estate and Navanakorn Industrial Promotion Zone, continue to expose to the risk of flooding as the situation is

not stabilized. The damage will be partly alleviated by the property damage insurance of leased factories and warehouses.

The severity of the floods to TICON’s credit profile will depend on the length of flooding period and the time needed to

resume operations of the customers in the flooded area.

TRIS Rating will closely monitor the flooding situation and conduct an extensive analysis to determine the full

impact of the flooding on the creditworthiness of Rojana and TICON. The CreditAlert will be resolved once the damage

assessment is finalized. -- End

CREDITALERT DESIGNATION: NEGATIVE Company Rating: A- Ticon Industrial Connection PLC (TICON) CREDITALERT DESIGNATION: NEGATIVE Company Rating: A Issue Ratings: TICON128A: Bt650 million senior debentures due 2012 A TICON165A: Bt650 million senior debentures due 2016 A TRIS Rating Co., Ltd./www.trisrating.com Contact: [email protected], Tel: 0-2231-3011 ext 500/Silom Complex Building, 24th Floor, 191 Silom Road, Bangkok 10500, Thailand Copyright 2011, TRIS Rating Co., Ltd. All rights reserved. Any unauthorized use, disclosure, copying, republication, further transmission, dissemination, redistribution or storing for subsequent use for any purpose, in whole or in part, in any form or manner or by any means whatsoever, by any person, of the credit rating reports or information is prohibited. The credit rating is not a statement of fact or a recommendation to buy, sell or hold any debt instruments. It is an expression of opinion regarding credit risks for that instrument or particular company. The opinion expressed in the credit rating does not represent investment or other advice and should therefore not be construed as such. Any rating and information contained in any report written or published by TRIS Rating has been prepared without taking into account any recipient’s particular financial needs, circumstances, knowledge and objectives. Therefore, a recipient should assess the appropriateness of such information before making an investment decision based on this information. Information used for the rating has been obtained by TRIS Rating from the company and other sources believed to be reliable. Therefore, TRIS Rating does not guarantee the accuracy, adequacy, or completeness of any such information and will accept no liability for any loss or damage arising from any inaccuracy, inadequacy or incompleteness. Also, TRIS Rating is not responsible for any errors or omissions, the result obtained from, or any actions taken in reliance upon such information. All methodologies used can be found at http://www.trisrating.com/en/rating_information/rating_criteria.html.