RAM REAFFIRMS GB3’S ISLAMIC DEBT SECURITIES RATINGS

12 Jul 2013 11:19

KUALA LUMPUR, July 10 (Bernama) -- RAM Ratings has reaffirmed the long-term AA1 rating of GB3 Sdn Bhd’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 GB3’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.

--BERNAMA

SPSA AS