TRIS Rating Affirms Company and Issue Ratings of “EASTW” at “A+/Stable”
TRIS Rating Co., Ltd. has affirmed the company and issue ratings of Eastern Water Resources Development and Management PLC (EASTW) at “A+” with “stable” outlook. The ratings reflect EASTW’s strengths as the sole raw-water provider with a comprehensive pipeline network in the Eastern Seaboard area, favorable growth prospect in the waterworks business, and the company’s strong financial profile.
The ratings are further supported by the high barriers to entry, EASTW’s predictable and stable cash inflow streams, and its low operational risk. EASTW’s strengths are partially constrained by the large capital requirements and the effects of unpredictable climate change, and government regulations on water resources management that are not yet well defined.
The “stable” outlook reflects the expectations that EASTW will continue to sustain its cash flow generation capability and its business operations will not be adversely impacted by any shifts in government policies.