East Water is continuously growing and remains the A+Stable business as ranked by Tris Rating
East Water successfully maintains its strength and recently “Tris Rating”, which is famous credit rating agency, ranked East Water as “A+Stable” company with possibility to grow by 1-3% in two years. This reflects well on East Water’s leadership in national water resources management and its stable financial status.
Eastern Water Resources Development & Management Public Company Limited or East Water has been ranked by “Tris Rating” as “A+Stable”, which reflects the stable financial status. As the only water resources management company having raw water supply network covering all of the East Coast areas, the level of business risk of East Water is quite low while having high profits and consistent cash flow. However, there are still limitations in terms of climate and lack of client diversity as well as unclear regulations on water resources management policy from the government authorities which may affect the company’s business operation in the future.
With the strong business foundation as the sole provider of raw water on the Eastern Coast, consistent cash flow and complete raw water supply system as well as the ability to search for the water sources to support the increasing demand of water of domestic and industrial sector as a result of the government policy on expansion of economic areas in the eastern region, 63% of East Water’s revenue in the previous year was obtained from raw water sale and 33% was from water supply business; therefore, Tris Rating may consider that East Water should not have problems of direct competitors for raw water business in the near future.
Based on the aforementioned strengths, stable financial status and consistent cash flow, East Water is viewed as the company with promising growth and rated “A+W with “Stable” credit. In 2016-2018, the business growth should be at 1-3% per year and the profits should not be less than 54% in the next 12 months.