Fitch revises Navanakorn view to negative

Fitch Ratings said it affirmed Navanakorn Electricity Generating Co. Ltd.'s national long-term rating and its senior unsecured rating at A-(tha). The outlook on national long-term rating has been revised to negative from stable.

The negative outlook reflects Fitch's expectation the pace of the company's deleveraging in 2020-2022 will be slower than previously estimated, given the weak earnings in 2019 due to an unplanned plant shutdown and margin pressure on electricity sales to industrial users.

“Leverage could remain above 4x, the level above which we could consider taking negative rating action, over the next two years (2019: 7.2x). In addition, slower-than-anticipated ramp-up in expansion may result in weaker earnings and further delay deleveraging,” Fitch said in a press release.

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