Agency retains Energy Fund's bond rating
Despite lower contributions to the Oil Fund, the ratings for bonds issued by the Energy Fund Administration Institute (EFAI) will not be immediately revised, according to Tris Rating Co Ltd.
On April 26, the government reduced the contribution from diesel sales to the Oil Fund as a temporary measure to help consumers amid soaring fuel prices. The contributions were reduced from Bt1.95 to Bt0.95 per litre, effective from April 28. The decision was expected to bring trouble to the EFAI, which needs constant income to repay loans taken out to finance past subsidies, the balance of which is now more than Bt60 billion."The change in the reserve imposed on diesel of Bt1 per litre will not affect the EFAI's bond ratings as TRIS Rating believes the EFAI will continue to receive government support to ensure EFAI's creditors receive timely payment of all interest and principal," Tris said in a statement. The ratings are also based on the National Energy Policy Council resolution of August 25, 2005 to support the Committee on Energy Policy Administration, which manages the Oil Fund and sets the rates at which reserves are imposed to ensure that the EFAI is able to meet its debt obligations. The Nation
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