At the same time, TRIS Rating assigns a “A-” rating to NTL’s proposed issue of up to Bt4.9 billion in senior unsecured debentures and the additional greenshoe portion of up to Bt3 billion. The company will use the proceeds from the proposed issues to fund its operation and refinance its existing debts.

The ratings reflect the business and financial support NTL receives from its major shareholder, Bank of Ayudhya PLC (BAY). The ratings on NTL are enhanced from the stand-alone rating based on the company’s status as an important subsidiary of BAY.

This has squeezed manufacturing production of export-oriented sectors, which has led to the fall in overall domestic production activity.

Nevertheless, private consumption continued to expand in line with continuous improvement in farm income. Going forward, although downside risks to Thailand’s economic growth are greater given weaker global economy, public policy continuity, including the implementation of infrastructure projects such as the Eastern Economic Corridor (EEC), will be key to underpinning private sector sentiment.

Moreover, policies to improve household purchasing power, which are likely to be implemented by the incoming government, will, to some extent, provide additional support to domestic consumption.

Bangkok Bank and its subsidiaries reported a net profit attributable to its owners of the Bank of Bt9.028 billion, a slight increase of 0.3 per cent from the first quarter of 2018. Net interest income increased by 6.9 per cent and net interest margin increased from 2.34 per cent to 2.48 per cent. Non-interest income decreased by 28.3 per cent due mainly to declines in gains on investments and net fees and service income. The decrease in net fees and service income was due to the exemption of transaction fees via digital channels and lower fees from loan-related services. Operating expenses declined by 3.1 per cent and the ratio of expense to operating income stood at 42.6 per cent.

At the end of March, the bank’s loans amounted to Bt2.029 trillion, a decrease of 2.6 per cent from the end of 2018 mainly due to the decline in loans to businesses and consumers. The ratio of non-performing loan (NPL) to total loans was 3.5 per cent, while the ratio of loan loss reserves to NPL was 189 per cent.

Kijja Sripatthangkura, the CEO, said it was moving beyond its core business of electricity generation.

The company wants to achieve a Bt200-billion enterprise value by 2023 driven by investment in infrastructure projects both in Thailand and overseas.

“The investment in infrastructure is expected to reach 25 per cent of total investment value by 2023. Under the easily recognised name of Ratch Group PCL, it enables to position the company’s obvious presence in non-power generation business.

“The first rebranding of Ratch after the establishment in 2000 will enhance the company’s internationalisation in response to increasing overseas investment goal and move us towards a leading company in the Asia-Pacific for creating economic value, coupled with environmental stewardship, and contributing benefits to society and the nation entirely,” said Kijja.