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TRIS gives A- rating to CH Karnchang’s unsecured debentures 

TRIS gives A- rating to CH Karnchang’s unsecured debentures 

TUESDAY, May 09, 2017

TRIS Rating has assigned a rating of A- to CH Karnchang Plc’s (CK) proposed issue of up to Bt4 billion in senior unsecured debentures that would due within 12 years. 

At the same time, TRIS Rating affirmed the company’s rating and the ratings of its outstanding senior unsecured debentures at A-. 
CK’s outlook remains stable. 
It plans to use the proceeds from the new debentures to repay existing loans. 
TRIS said the ratings reflected CK’s position as a top-tier contractor, its ability to undertake large-scale and sophisticated construction projects, as well as the synergy and financial flexibility it gained from its strategic investments. 
TRIS said these strengths were partially offset by cyclic and stiff competition in the engineering and construction industry, as well as the company’s high financial leverage.
The stable outlook reflects TRIS Rating’s expectations that CK will remain highly competitive in securing new projects in the face of forthcoming infrastructure projects. 
It said CK would be able to sustain its operating margin above 6 per cent on average despite stiff competition and maintain a total debt to capitalisation ratio of below 65 per cent over the next three years.