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.
TRIS Rating affirms the company rating on Amata B. Grimm Power 3 Ltd. (ABP3) at ?A-? with a ?stable? rating outlook. The rating reflects the predictable cash flows ABP3 receives through a long-term power purchase agreement (PPA) with the Electricity Generating Authority of Thailand (EGAT) under the Small Power Producer (SPP) scheme. The rating also reflects the use of proven technology in its cogeneration power plant. In addition, its major shareholder, B. Grimm Power PLC (BGRIM) has a strong track record in operation of gas-fired power plants.
KEY RATING CONSIDERATIONS
Predictable cash flow from long-term PPAs with EGAT
ABP3 has a 25-year PPA with EGAT, covering 90 megawatts (MW), under the SPP scheme. Under the terms of a standard PPA for an SPP cogeneration plant, EGAT agrees to dispatch at least 80% of the contracted capacity, based on plant operating hours. The PPA is on a take-or-pay basis, which stabilizes the cash flow ABP3 receives. In addition, the risks of fuel price an
TRIS Rating affirms the company rating on Bualuang Securities PCL (BLS) at ?AA? with a ?stable? outlook. BLS?s rating is enhanced from its stand-alone credit profile to reflect its status as a highly strategic subsidiary of Bangkok Bank PCL (BBL, rated ?BBB+/Stable? by S&P Global Ratings). The company?s stand-alone rating also takes into consideration its strong market position in the securities business, solid capital and earnings assessment, prudent risk management policies, and strong funding and liquidity profile.
KEY RATING CONSIDERATIONS
A highly strategic subsidiary of BBL
We view BLS as a highly strategic subsidiary of BBL as the company serves as a capital market arm of BBL providing a comprehensive range of capital market solutions for BBL?s clients. BLS is wholly owned by BBL. Business referrals between the two entities have been part of the group?s strategy. Currently, approximately 50% of the company?s newly added client accounts were referred from BBL. In addition to