Tris Rating has affirmed the company rating of Global Power Synergy Plc (GPSC) at AA- and assigned a rating of AA- to GPSC's proposed issue of up to 30 billion baht in senior unsecured debentures, and the additional greenshoe portion of up to 5 billion.
The proceeds from the proposed debentures will be used for refinancing GPSC's existing loans.
The ratings on GPSC and its debentures reflect its position as a major private power producer in Thailand with highly predictable cash flow from its long-term power purchase agreements with the Electricity Generating Authority of Thailand and PTT Group, as well as the company's prudent financial policy.
The ratings also reflect GPSC's important role as a flagship company in the power business under PTT Group.
The ratings take into consideration the company's rising debt level after the acquisition of Glow Energy Plc.
The stable outlook reflects Tris's expectation that the plants in operation will continue to run smoothly and generate cash as forecast.
In addition, Tris also expects the company to deleverage its capital structure as planned.
An upgrade could occur if GPSC can smoothly integrate the power portfolio with Glow as planned. A downgrade could occur if cash flow is lower than expected.