TRIS Rating affirms the company rating on Raja Ferry Port PLC (RP) at ?BB+?. At the same time, TRIS Rating revises the rating outlook to ?negative?, from ?stable?. The outlook revision reflects our expectation that RP?s operating performance and financial strength will deteriorate materially from the impact of the Coronavirus Disease 2019 (COVID-19) on tourism and economic activities in Koh Samui and Koh Phangan. In addition, we expect RP?s leverage to rise significantly as a result of its fleet maintenance and renewal plan.
The rating continues to reflect RP?s established business position in ferry operations in Surat Thani province, with the operating routes from Don Sak pier to Koh Samui and Koh Phangan. The company is also working on opening new ferry routes to Koh Pha Luay and Koh Tao, emphasizing its ?Island Gateway? strategy. However, the rating is constrained by the company?s small business scale and geographical concentration.