RAM Ratings has reaffirmed the AA1 rating of GB3 Sdn Bhd’s (”GB3″ or “the Company”) RM850 million Senior Secured Al-Bai Bithaman Ajil Bond Facility (”ABBA Bonds”), with a stable outlook. GB3 is an independent power producer (”IPP”) operating a 640-MW combined-cycle, gas-turbine power plant in Lumut, Perak.
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. (Press Release)