S&P affirms EGAT

Standard & Poor's said it affirmed its BBB+ foreign currency and A- local currency corporate credit ratings on the EGAT PCL, the country's largest electricity generator.

The outlook is stable.

EGAT, which was the former Electricity Generating Authority of Thailand, is owned by the government of Thailand. It is the sole electricity transmission service provider, the largest electricity generator in the country, and the sole wholesale supplier to electricity retailers. It also buys electricity from other generators to supplement its own generation.

S&P said the ratings on EGAT reflect the following strengths: Expected government support; a strong market position; and protection from increases in fuel and power purchase costs. However, the rating also reflects the company's weak cash flow protection measures and uncertain operating environment.

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