Jun 18 2012
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RAM Ratings reaffirms AA1 rating of GB3's Islamic debt securities
The rating is supported by GB3's strong business profile, underscored by the favourable terms of its Power Purchase Agreement ("PPA") with Tenaga Nasional Berhad, satisfactory operating record and healthy cashflow that supports its debt-servicing ability. Similar to all other IPPs, however, the rating is moderated by regulatory and single-project risks.
In fiscal 2011, GB3 delivered a satisfactory operational performance and was able to earn full available capacity payments, having met all the requirements set out in the PPA. That said, GB3's third availability target block (2009 to 2011) averaged at 91.52%, i.e. marginally higher than the contracted 91.5% and weaker than the previous 2 blocks. Nevertheless, the Company experienced few unscheduled outages in 2011, thus keeping its unscheduled outage rate well within the allowable limit.
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