KUALA LUMPUR, July 10 (Bernama) -- RAM Ratings has reaffirmed the long-term AA1 rating of GB3 Sdn Bhdâ€™s (GB3)RM850 million Senior Secured Al-Bai Bithaman Ajil Bond Facility (ABBA Bonds), with a stable outlook.
GB3 is an independent power producer (IPP) operating a 640-MW combined-cycle, gas-turbine power plant in Lumut, Perak.
"The rating is supported by GB3â€™s strong business profile, underscored by the favourable terms of its Power Purchase Agreement (PPA) with Tenaga Nasional, satisfactory operating record and healthy cashflow that supports its debt-servicing ability," said the company in statement.
Similar to all other IPPs, the rating is moderated by inherent regulatory and single-project risks.
For the period under review, the company delivered a satisfactory operational performance and was able to earn full available capacity payments (ACPs).
GB3 also managed to fully pass-through its fuel costs to TNB after having met all the requirements set out in the PPA.