CK Power Secures 'A-' Rating Upgrade for Debentures Amidst Strong Financial Management
CK Power Plc achieves a credit rating boost from TRIS Rating, reflecting a stable financial outlook and strategic growth initiatives.
CK Power Plc (CKP) has received an upgrade of its debenture credit rating from 'BBB+' to 'A-' from TRIS Rating, signaling a significant enhancement in its financial standing and effective debt management strategies.
This new rating, which became effective on March 31, is complemented by a 'stable' outlook.
Additionally, TRIS Ratings has affirmed CKP's issuer rating at 'A-'.
The Managing Director, Thanawat Trivisvavet, attributed this rating improvement to a systematic reduction in long-term debt at its major subsidiaries, Nam Ngum 2 Power Co and Bangpa-in Cogeneration Ltd, which has effectively decreased subordination risk.
The company's strong performance in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) and its consistent capability to service debt, even amidst global economic fluctuations, further contributed to this positive rating.
As of the end of 2024, CK Power reported a healthy liquidity ratio of 1.86, an increase from the previous year's 1.68. Its net interest-bearing debt to equity ratio was recorded at 0.52, indicating robust financial management practices.
TRIS highlighted CK Power’s dependable cash flow generation, which is underpinned by long-term Power Purchase Agreements (PPAs) with the Electricity Generating Authority of Thailand (EGAT) and a diverse portfolio of renewable energy resources.
CK Power is actively pursuing its growth strategy for the period from 2025 to 2030, intending to enhance its installed capacity through solar power initiatives supported by private PPAs and participation in government-led renewable energy auctions.
Progress on solar project collaborations with Bangkok Expressway and Metro Plc (BEM) is on track for completion in the second quarter of 2025. Concurrently, the Luang Prabang Hydropower Project has reached 42% completion and is scheduled for commercial operation by 2030.
Moreover, CK Power continues to engage in the sale of Renewable Energy Certificates (RECs) and remains committed to achieving net-zero greenhouse gas emissions by 2050.
This new rating, which became effective on March 31, is complemented by a 'stable' outlook.
Additionally, TRIS Ratings has affirmed CKP's issuer rating at 'A-'.
The Managing Director, Thanawat Trivisvavet, attributed this rating improvement to a systematic reduction in long-term debt at its major subsidiaries, Nam Ngum 2 Power Co and Bangpa-in Cogeneration Ltd, which has effectively decreased subordination risk.
The company's strong performance in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) and its consistent capability to service debt, even amidst global economic fluctuations, further contributed to this positive rating.
As of the end of 2024, CK Power reported a healthy liquidity ratio of 1.86, an increase from the previous year's 1.68. Its net interest-bearing debt to equity ratio was recorded at 0.52, indicating robust financial management practices.
TRIS highlighted CK Power’s dependable cash flow generation, which is underpinned by long-term Power Purchase Agreements (PPAs) with the Electricity Generating Authority of Thailand (EGAT) and a diverse portfolio of renewable energy resources.
CK Power is actively pursuing its growth strategy for the period from 2025 to 2030, intending to enhance its installed capacity through solar power initiatives supported by private PPAs and participation in government-led renewable energy auctions.
Progress on solar project collaborations with Bangkok Expressway and Metro Plc (BEM) is on track for completion in the second quarter of 2025. Concurrently, the Luang Prabang Hydropower Project has reached 42% completion and is scheduled for commercial operation by 2030.
Moreover, CK Power continues to engage in the sale of Renewable Energy Certificates (RECs) and remains committed to achieving net-zero greenhouse gas emissions by 2050.
