RAM: Edra Power has strong credit pro­file

The Star Malaysia - StarBiz - - News -

KUALA LUMPUR: RAM Rat­ings has as­signed cor­po­rate credit rat­ings of AA1/Sta­ble/P1 to Edra Power Hold­ings Sdn Bhd (EPH).

In a state­ment here yes­ter­day, the rat­ings firm said EPH had ex­hib­ited a strong credit pro­file, an­chored by the re­silient na­ture of its in­de­pen­dent power pro­ducer (IPP) busi­nesses that sup­port the group's healthy cash flow-gen­er­at­ing abil­ity.

“This, cou­pled with a lightly geared com­pany-level bal­ance sheet, has trans­lated into a ro­bust com­pany-level ad­justed op­er­at­ing cash flow to debt cov­er­age ra­tio of 1.61 times in the fi­nan­cial year 2016,” said co-head of in­fra­struc­ture and util­i­ties rat­ings Chong Van Nee.

EPH has a ma­ture fleet of 13 power plants op­er­at­ing in reg­u­lated and con­ces­sion- based seg­ments, most of which ex­hibit com­mend­able op­er­at­ing per­for­mances and have long track records of be­tween eight and 22 years.

It is the sec­ond-largest IPP group in Malaysia (by ca­pac­ity owned) af­ter Malakoff Corp Bhd, ac­count­ing for 11% of the na­tion's to­tal in­stalled ca­pac­ity.

The group also has a pres­ence in Bangladesh, Egypt, the United Arab Emi­rates and Pak­istan, with an ag­gre­gate op­er­a­tional in­stalled ca­pac­ity of 8.7 GW. — Ber­nama

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