TRIS Rating affirms the company rating on Nawarat Patanakarn PLC (NWR) at ?BB+? with a ?stable? rating outlook. The rating reflects the company?s track record of undertaking a broad range of construction projects for the public and private sectors, its sizable backlog, as well as a promising outlook for public-sector construction work in the near-to-intermediate term. However, the rating is held back by the company?s weak profitability, and low cashflow protection against financial leverage.
KEY RATING CONSIDERATIONS
Track record in a broad range of works
NWR is the sixth largest contractor listed on the Stock Exchange of Thailand (SET), based on annual revenue and assets. The company undertakes a broad range of civil construction work, including the construction of commercial buildings, industrial factories, power plants, roads, expressways, reservoirs, ports, tunnels, etc. NWR also manufactures precast concrete components for various types of civil and infrastructural works.
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