RAM: Edra Power has strong credit profile

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