Published on 30 December 2013
RAM Ratings has reaffirmed
the AA1/stable rating of Teknologi Tenaga Perlis Consortium Sdn Bhd’s (TTPC or
the Company) RM835 million Sukuk Murabahah (2013/2023). The rating
reflects the Company’s sturdy business profile, underscored by the strong terms
of its Power Purchase Agreement (PPA) with Tenaga Nasional Berhad (TNB), its
plant’s laudable operational track record, as well as the Company’s robust
debt-servicing ability. Further comfort is derived from the strong credit profile
of TNB – the Company’s sole off-taker – whose debt securities are rated
AAA/stable by RAM. As with other IPPs, TTPC’s rating is moderated by inherent
regulatory and single-project risks. During the period under review, TTPC maintained its commendable operational performance, hence enabling it to meet all the performance requirements set out in the PPA to earn full available capacity payments. At the same time, the Company successfully met its third Availability Target block (i.e. 2010-2012) and was also able to operate within the unscheduled outage limit of 6% while fully passing through its fuel costs to TNB.
Based on RAM’s sensitised cashflow projections, TTPC is expected to generate an average annual pre-financing cashflow of about RM210 million throughout the tenure of the Sukuk. This translates into a strong finance service coverage ratio (with cash balances, post-distribution) of 1.80 times. Our cashflow analysis assumes that TTPC will pay optimum dividends to its shareholders on a forward-looking basis throughout the Sukuk’s tenure (as opposed to only the year of assessment) when adhering to its financial covenants.
TTPC owns and operates a 650-MW combined-cycle, gas-turbine power plant in Kuala Sungai Baru, Perlis, under a 21-year PPA with TNB, which expires on 31 March 2024.
Chin Wynn
(603) 7628 1170
chinwynn@ram.com.my
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.