TRIS Rating has affirmed the company rating on RATCH Group PLC (RATCH) and the ratings on its senior unsecured debentures at AA+ with a Stable outlook on 28 August 2026. The rating incorporates a two-notch uplift from RATCH’s stand-alone credit profile of aa-, supported by its strategic importance to the Electricity Generating Authority of Thailand (EGAT).
Strategic Support and Hin Kong Power Consolidation
The rating affirmation reflects RATCH’s status as a strategically important subsidiary of EGAT, which holds a 45% ownership stake and maintains dominant influence over corporate strategy. As EGAT’s primary investment arm in power generation, RATCH plays a vital role in Thailand’s energy security. This structural alignment supports a high likelihood of extraordinary support from EGAT in the event of financial distress.
The consolidation of Hin Kong Power (HKP), effective from October 2025, significantly strengthens RATCH’s consolidated operating scale and cash flow predictability. HKP is projected to expand group revenue to between THB 40 billion and THB 45 billion annually, lifting core EBITDA to THB 10 billion to THB 12 billion per year through 2028. Additionally, HKP maintains a lower project debt-to-EBITDA ratio of 4.4 to 5.0 times, offering modest support to overall credit metrics.
Regional Portfolio Expansion and Earnings Stability
RATCH maintains an attributable operating capacity of 8.1 GW and a development pipeline of 1.6 GW across the Asia-Pacific region as of June 2026. Approximately 70% of total operating capacity is secured under long-term power purchase agreements with creditworthy counterparties, including EGAT, the Provincial Electricity Authority, and Indonesia’s PT PLN. Overseas exposure includes 3.9 GW of operational capacity, led by contracted utility assets in Australia and a 31.3% stake in Indonesia’s Paiton Energy.
Consolidated EBITDA is forecast at THB 14.6 billion to THB 15.2 billion in 2026, rising toward THB 15.5 billion to THB 16.0 billion across 2027 to 2028. Revenue contributions from new Australian renewable energy projects and domestic renewable additions are expected to compensate for the progressive expiration of power purchase agreements at Ratchaburi Electricity Generating Co., Ltd. (RATCHGEN). Annual dividend receipts from equity investments are projected to deliver THB 4.1 billion to THB 4.6 billion.
Capital Expenditure, Leverage, and Debt Profile
Financial leverage remains elevated due to continuous capital spending across domestic and regional markets. The consolidated debt-to-EBITDA ratio is projected to decline from 6.3 times in 2025 to approximately 6.0 times in 2026, before easing to between 5.4 and 5.7 times over 2027 to 2028. Net investment spending is estimated at THB 13 billion to THB 16 billion, primarily targeting five solar projects totaling 298 MW under the RE Big Lot Phase 2 program.
Liquidity remains manageable against short-term commitments. As of June 2026, available liquidity included THB 13 billion in cash, THB 9 billion in short-term investments, THB 10 billion in undrawn credit facilities, and projected annual funds from operations of THB 9 billion to THB 10 billion, sufficient to address THB 29 billion in debt maturities and THB 5 billion in committed investments. Consolidated interest-bearing debt stood at THB 111 billion, maintaining a priority debt ratio of 49%.
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