24 June 2015
RAM Ratings has reaffirmed the AA3/Stable rating of Prai Power Sdn Bhd's (Prai Power or the Company) RM780 million Al-Istisna' Fixed-Rate Serial Bonds (2001/2016) (the Bonds). Prai Power owns and operates a 350-MW combined-cycle, gas-turbine power plant in Prai, Penang (the Plant).

The rating remains supported by Prai Power's strong business profile, underscored by the favourable terms of its power purchase agreement with Tenaga Nasional Berhad, its sole off-taker. The Company's satisfactory operating performance and ample liquidity which supports its debt-servicing ability are also positives. As with other independent power producers, the Company is exposed to inherent regulatory and single-project risks, which moderate its rating.

As at its recent principal repayment date of 26 February 2015, Prai Power had achieved a finance service cover ratio of 1.54 times (with cash balances, post-distribution). With cash holdings of RM116.1 million as at the same date and a projected pre-financing cashflow of about RM105 million over the next 1 year, Prai Power has ample liquidity to fully repay final obligations of RM71 million in respect of the Bonds falling due on 26 February 2016.

Media contact
Chinthamani Thanneermalai
(603) 7628 1013
chinthamani@ram.com.my

© Press Release 2015