Global Power Synergy Public Co. Ltd. 'BBB-' Rating Affirmed With Negative Outlook Owing To Elevated Leverage
We believe GPSC's proposed acquisition of Glow and investment in an ERU of Thai Oil will result in significantly higher leverage and pose some funding and integration risks. The pace and extent of deleveraging is uncertain over the next 12-18 months, in our view. The investments should improve GPSC's scale and diversity. We also expect ongoing equity and shareholder loans from majority shareholders to support the company's liquidity and funding position. S&P Global Ratings affirmed its 'BBB-' long-term issuer credit rating on GPSC. The rating outlook on the Thailand-based power generator is negative. The negative outlook over the next 12-18 months reflects GPSC's high leverage, some uncertainty on timing and amount of equity funding, and execution risk in integrating the Glow acquisition. SINGAPORE (S&P Global Ratings) Jan. 28, 2019--S&P Global Ratings said today that it had taken the above rating actions. We affirmed the rating with