Rating uplift boosts Gulf's confidence

Gulf Development Plc (Gulf) recently established through the merger of Gulf Energy Development Plc and Intouch Holdings Plc expects bright business prospects, thanks to a better credit rating and continual financial support over the next five years.

- YUTHANA PRAIWAN NUNTAWUN POLKUAMDEE KOMSAN TORNTERMVASANA

The company began trading its shares yesterday on the Stock Exchange of Thailand after the amalgamation of Intouch, the parent of major telecom operator Advanced Info Service (AIS), and Gulf. Thailand's largest power company by market value, was completed on March 31.

Gulf's share price yesterday closed at 48.75 baht, with the most active trading value worth 5.43 billion baht.

Tris Rating Co, a credit rating agency, this week upgraded the company's corporate credit rating from "AA-" to "AA," and its senior unsecured debentures from "A" to "AA-" with a 'stable' outlook, citing the newly prominent position in the domestic power industry and stable cash flow.

"This will benefit our cash flow and liquidity," said Yupapin Wangviwat, deputy chief executive of Gulf.

The company's business direction is aligned with an investment plan that Gulf announced earlier, she said.

Earlier it disclosed that the company will spend 100 billion baht over the next five years to develop data centre and telecom businesses, as well as develop-ing a data centre facility.