TRIS Rating affirmed the company rating on Thoresen Thai Agencies PLC at BBB with a Stable outlook on 10 September 2026, while assigning a BBB rating to its proposed issue of up to THB1.7 billion in senior unsecured debentures. The proceeds will refinance maturing debentures.
Dry-Bulk and Offshore Operations Drive Earnings
TRIS Rating affirmed the company rating of Thoresen Thai Agencies PLC (TTA) and the ratings on its outstanding senior unsecured debentures at BBB with a Stable rating outlook. Concurrently, the agency assigned a rating of BBB to TTA’s proposed issue of up to THB1.7 billion senior unsecured debentures maturing within 3 years and 6 months. The company plans to deploy the proceeds from the new offering to refinance its existing maturing debentures.
The ratings reflect TTA’s established footprint and cost structure in dry-bulk shipping alongside the growing scale of its offshore service arm, Mermaid Maritime PLC (MML), in which TTA holds a 68.4% stake. TRIS Rating projects dry-bulk freight rates to remain supportive due to tight effective vessel supply caused by geopolitical rerouting and compliance requirements on aging fleets. Average time charter equivalent (TCE) rates are forecast at USD16,800 per day in 2026, moderating to USD14,500 in 2027 and USD12,500 in 2028, generating dry-bulk revenues of THB8.7 billion in 2026 and THB7–THB8 billion annually over 2027–2028.
Offshore services serve as an additional earnings pillar, anchored by subsea inspection, repair, and maintenance (IRM) contracts in the Middle East. As of June 2026, MML held an orderbook of USD750 million, consisting of 76% IRM services, 14% decommissioning and transportation and installation (T&I), and 10% cable-laying. TRIS Rating projects offshore service revenue of approximately USD320 million in 2026, increasing to USD370–USD380 million annually in 2027–2028 as new decommissioning and T&I tenders are secured across Southeast Asia.
Financial Profile, Digital Assets, and Non-Core Assets
TTA maintains moderate leverage backed by sizable liquidity buffers. As of June 2026, the company held THB8.4 billion in cash and cash equivalents against THB11.3 billion in total debt, yielding an adjusted debt to EBITDA ratio expected to stay between 1.4 and 1.5 times over the forecast period. Net interest-bearing debt to equity stood at 0.07 times, well within its debenture financial covenant limit of below 2 times. Capital expenditures are projected at THB2.0–THB2.5 billion annually across 2026–2027, primarily allocated to offshore upgrades and dry-bulk fleet renewal, including two second-hand vessels in 2026 and one in 2027.
Rating constraints stem from the cyclical nature of shipping and offshore markets, alongside TTA’s exposure to digital asset investments. TTA manages its holdings under a liquidity threshold requiring THB4 billion in minimum available cash rather than fixed investment caps. As of 30 June 2026, digital asset holdings stood at approximately THB5.8 billion on the consolidated balance sheet, introducing volatility to net cash predictability and credit metrics.
Non-core units showed mixed operational contributions. Agrochemicals remain the primary non-core driver, with forecast revenue of THB3.3–THB3.6 billion annually across 2026–2028. The food and beverage segment operates 212 Pizza Hut and 45 Taco Bell outlets as of June 2026, generating projected revenue of THB2.2–THB2.4 billion per year. Meanwhile, the high-rise condominium project The 125 Sathorn, held under a 60% joint venture, faces an estimated 2-to-3-year delay due to regulatory guideline disputes currently under review by the Supreme Administrative Court. Electric vehicle initiatives in trucks and motorcycles remain in early stages without material earnings contributions.
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