BANGKOK, April 9 (TNA) — TRIS Rating Co, Ltd (TRIS Rating) has upgraded the CK Power Public Company Limited’s debenture rating from “BBB+” to “A-,” effective March 31, while affirming its company rating at “A-” with a “stable” outlook, according to Managing Director of CK Power Public Company Limited Thanawat Trivisvavet.
This rating upgrade reflects CKPower’s strengthened debt structure achieved through effective debt management, a gradual reduction of subsidiary debt, and strong debt servicing capacity.
These factors have collectively reinforced the Company’s overall financial stability.
Mr Thanawat explained that the debenture issue rating upgrade is attributable to the gradual reduction of long-term debts at its subsidiaries, Nam Ngum 2 Power Company Limited (NN2) and Bangpa-in Cogeneration Limited (BIC), which have lowered the Company’s subordination risk relative to its subsidiaries.
This, coupled with its strong Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) and effective debt management, has enabled the Company to maintain robust debt servicing capacity despite global economic volatility.
Most importantly, TRIS Rating remains highly confident in CKPower’s consistent cash flow generation, supported by long-term Power Purchase Agreements (PPAs) with the Electricity Generating Authority of Thailand (EGAT) and a portfolio of high-potential renewable energy assets, which underpins the Company’s long-term stable and sustainable growth.
CKPower has continued to maintain a robust financial position, with a liquidity ratio of 1.86 as of December 31, 2024, an increase of 0.18 from the previous year, demonstrating the Company’s effective liquidity management.
Meanwhile, its net interest-bearing debt to shareholders’ equity ratio remains low at 0.52.
The “stable” rating outlook reflects TRIS Rating’s confidence in CKPower’s ability to maintain solid operating performance and generate strong cash flow from its diverse power plants portfolio. (TNA).-813
