The best TRIS Rating “AAA” (Triple A) confirms PEA’s next prospective move
Provincial Electricity Authority (PEA) has been affirmed “AAA” (Triple A) on the company credit rating by TRIS Rating Co., Ltd for the first time.
The best-in-class ranking reflects PEA’s strong performance as the state-owned enterprise incorporating prudent financial policy and solid financial status, as well as the reliable support it receives from the Thai government to build confidence among worldwide investors.
PEA Governor Sompong Preeprem revealed the company credit rating announced by TRIS Rating Co., Ltd as AAA (Triple A) with “Stable” outlook. The credit rating testifies to PEA’s significant role as the State Owned Enterprise (SOE) responsible for generating, transmitting and distributing electricity throughout the country (not including Bangkok, Samut Prakarn, and Nontaburi) as well as its proficiency in driving the PEA’s future plans to expand the organisation’s business scope in order to support the energy industries associated and influenced by “disruptive technology”.
The AAA rating defines the organisation’s bond profile, which indicates the lowest level of risk as well as ensures that interest, expenses and debt repayment capability at the highest rate. The rating also suggests risk indication for investment decisions, which is in compliance with the Public Debt Management Office (PDMO) initiatives promoting investment opportunities in state enterprise bonds issued by high potential state-owned enterprises.
Other compliance points beneficial to the sovereign credit rating include recent bond issuance regulations launched by The Securities and Exchange Commission (SEC), which require Thai state-owned enterprises to present bond filings and credit rating profiles when proposing bond sales to prime or general investors as well as the public.
Moreover, the new investment conditions established by the Office of Insurance Commission (OIC) induce the impact of state enterprise bond entities that are non-guaranteed by Ministry of Finance and non-rated credit bonds. The current legislative environment has proven to be favourable to the PEA’s implementation of its new business platform and expansion of its customer base while also strengthening its profile as a trustworthy state enterprise.
The AAA credit rating testifies to the efforts and commitment of PEA staff, management and board members, to the organisation’s success as a Digital Utility.