EGCO Group Assigned “AA+” Company Rating for 2nd Year in a Row

Electricity Generating Public Company Limited or EGCO Group has been assigned an “AA+” company rating for the second consecutive year by TRIS Rating. The affirmation emphasizes the Company’s position as a major sustainable Thai power generation and energy company with a well-diversified fuel portfolio for power generation, outstanding track records, reliability of cash flow and strong liquidity.

Mr. Thepparat Theppitak, EGCO Group’s President, said, “TRIS Rating, the leading credit rating agency in Thailand, affirmed the company rating on EGCO Group in 2022 at “AA+”, remaining the same rating compared to last year. This underlined the Company’s position as one of the leading power producers in Thailand, with a large and well-diversified power portfolio in terms of types of power plants, types of fuel used and locations. Additionally, the Company has the high reliability of cash flows, supported by long-term power purchase agreements (PPAs), and strong liquidity together with long-standing track records of outstanding operations for more than 30 years.”

At the same time, TRIS Rating revised the rating outlook on EGCO Group to “Negative”. The outlook revision reflects the tendency of rising financial leverage over coming years, given EGCO Group’s present investment strategies to expand power and energy-related businesses driven by “Cleaner, Smarter and Stronger to Drive Sustainable Growth” direction. However, the rating outlook can be revised to “Stable” if the Company improves its financial profile better over the heavy investment period.

“The rating affirmation demonstrates the credibility of our business operation, reliable cash flow and strong liquidity, despite the ongoing challenges from the global economic situation, fuel cost fluctuation and the transition of energy industry. Addressing our ambition to drive business growth, EGCO Group has been seeking investment opportunities in power and energy-related businesses throughout upstream and downstream areas both in Thailand and overseas. In parallel, we highly place the importance on financial strength to well prepare for business challenges ahead, aiming to sustainably create added value to all our shareholders and stakeholders,” added Mr. Thepparat.