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Thailand: Bonds as alternative financing expected to boost capital adequacy, increase financial leverage risk

Thailand: Bonds as alternative financing expected to boost capital adequacy, increase financial leverage risk
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TRIS Rating Affirms Company Rating on GLAND at BBB with Stable

TRIS Rating affirms the company rating on Grand Canal Land PLC (GLAND) at ?BBB? with a ?stable? outlook. The rating reflects the reliable income streams the company receives from contract-based rental and service income from office and retail space, and its small business scale with assets concentrated in one location. The rating is partly enhanced by the support GLAND receives from its major shareholder, Central Pattana PLC (CPN), rated ?AA/Stable? by TRIS Rating. KEY RATING CONSIDERATIONS Small and concentrated recurring income base GLAND?s property portfolio consists of office buildings and retail space for rent. The office buildings have a net leasable area of 145,453 square metres (sq.m.) plus retail space of 24,854 sq.m. located on Rama 9 road, Bangkok.

TRIS Rating Assigns BBB Rating to Basel III Tier 2 Capital Securities

TRIS Rating Affirms Company & Senior Unsecured Debt Ratings on NN2PC at

TRIS Rating affirms the company rating on Nam Ngum 2 Power Co., Ltd. (NN2PC) and the ratings on its outstanding senior unsecured debentures at ?A? with a ?stable? outlook. The ratings reflect the company?s well-built contractual framework and reliable cash flows received from a long-term power purchase agreement (PPA) with the Electricity Generating Authority of Thailand (EGAT; rated ?AAA? with a ?stable? outlook by TRIS Rating). The ratings also recognize NN2PC?s track record of efficient plant operation and adequate liquidity. However, the ratings are constrained by the uncertain water flow from the Nam Ngum river and the country risk of the Lao People?s Democratic Republic (Lao PDR).

TRIS Rating Affirms Guaranteed Debt Ratings on ABPSPV at A- with

TRIS Rating affirms the ratings on the guaranteed debentures of Amata B. Grimm Power SPV1 Ltd. (ABPSPV) at ?A-? with a ?stable? rating outlook. The debentures are jointly and severally guaranteed by three power generation companies: Amata B. Grimm Power 3 Ltd. (ABP3), Amata B. Grimm Power (Rayong) 1 Ltd. (ABPR1), and Amata B. Grimm Power (Rayong) 2 Ltd. (ABPR2). ABP3, ABPR1, and ABPR2 are rated ?A-? with ?stable? rating outlooks by TRIS Rating. The issue ratings reflect the creditworthiness of ABP3, ABPR1, and ABPR2. KEY RATING CONSIDERATIONS Unconditional and irrevocable guarantees The ratings on ABPSPV?s guaranteed bonds are equal to the ratings on its guarantors, ABP3, ABPR1, and ABPR2. Under the terms of the guarantee, the guarantors will jointly and severally provide unconditional and irrevocable guarantees on all amounts due under the debentures, including the principal amount of up to THB11.5 billion, and interest accrued thereon, and related expenses.

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