TRIS Affirms BEM’s Company Ratings at “A”, Downgrading Outlook to “Negative”

TRIS Rating affirms the company rating on Bangkok Expressway and Metro Public Company Limited (BEM) and the ratings on BEM’s senior unsecured debentures at “A“. At the same time, TRIS revised the rating outlook to “negative” from “stable”.

The outlook revision reflected TRIS’ concerns over BEM’s deteriorating financial metrics from its high leverage and weakening operating cash flow in 2020 impacted by the coronavirus (COVID-19) outbreak. However, TRIS viewed the negative impacts from the outbreak to be temporary and BEM’s long-term business position will remain intact. TRIS also viewed that the earnings from the full operation of the mass rapid transit (MRT) Blue Line will take time to ramp up.

 

The ratings company continued to reflect BEM’s strong business profile, supported by the strong and steady operating cash flow from its expressway business and growth prospects in the MRT operation. The extension of the expressway concessions until 2035 also supports BEM’s credit profile as it helps secure predictable cash flow in the long term.